Vehicle registrations across most categories have declined in June in comparison to May, a drop in 2-wheeler registrations have driven down the total to 26,201 the lowest on record over the past 36 months.
The slowdown and specifically the sharp decline in 2-wheeler and mini truck segments are probably due to the resale of repossessed registered vehicles emanating from rising NPLs, crowding out the unregistered market, focus of credit providers in collections rather than extending new credits. And the low consumer and business confidence due to the fallout of the Easter bombings and subsequent communal unrest.
In most categories there is a lag of around 30 days between the date of imports and registration. The budget estimate is for Rs 240 billion in taxes from this sector, if the current run rate continues the treasury will struggle to even get 60% of this figure, i.e. a miss of Rs 96 bn.
Total car registrations recorded 1,580 units in June down from 1,816 units in May and significantly down from 6,819 units 12 months ago.
Brand new cars recorded 222 units in June down from 291 units in May and 992 units 12 months ago. Small cars accounted for bulk of them recording 185 units (83%). Imports from India and Japan accounted for 45% and 41% of units, respectively. Financing share was 50% in line with the normal monthly average.
Preowned cars recorded 1,358 units in June down from 1,525 units in May and significantly down from 5,827 units 12 months ago. Small cars accounted for bulk of them recording 1,303 units (96%). Toyota was the segment leader accounting for 832 units (61%) – Vitz 734 units followed by Suzuki with 324 units (24%) – Wagon R 180 units. Imports from Japan account for 99% of volumes. Financing share was 55% in line with the normal monthly average.
Premium brands recorded 66 units in June down from 93 units in May and significantly down from 227 units 12 months ago. New cars accounted for 66 units – Mercedes Benz recorded 28 units – C class 23 units. Preowned cars recorded 35 units – Mercedes Benz 7 units – C class 6, BMW 6 units – 3-series 4 units and Audi 22 units – A1 16 units, A3 5 units.
Under notable premium car registrations there is a Lamborghini Avantandor SV – it may have been imported into the country sometime back and only registered recently.
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