15% year-on-year drop in vehicle registrations in December month in India!!
We are now in the last week in the month of December and 2025 will soon arrive.
It seems that the auto industry in India has witnessed a huge slump. This has been shown in the drop in the registrations in the 2 wheeler category now.
According to VAHAN, the national vehicle registry it was confirmed that there has been a 15 percent drop in the overall vehicle registrations in December between 1 and 24. Information collected is that the number was about 13.90 lakh units. During 1st to 24th December 2023, it was 16.40 lakh units.
It is worthy to note that especially in the two wheeler category there was a huge slump of 20% in the vehicle registrations. The passenger vehicles or PVs witnessed a marginal decrease of 1% and commercial vehicles or CV witnessed a marginal decrease of 9%. Truth is that the drop in the vehicle registrations in these two is not as huge as that witnessed in the two wheeler category.
Customers preferring more environmental friendly vehicles:
It has been revealed that the drop in vehicle registrations was driven deeply by a drop of 21percent belonging to petrol powered models. What has been sensational is that those vehicles running on electric and CNG etc witnessed a rise in the registrations by 9% and 8% respectively. It is very clear that the customers now prefer environmentally friendly transportation options even in the overall slump.
Signs of recovery:
The third week of the month of December saw signs of recovery despite an overall drop in the registrations. Point to be noted is that the overall decrease in the registrations narrowed from 20% to 15%. There has been an improvement in the drop from 25% to 205 in the 2 wheeler category. Potential turnaround in the auto sector is now expected going into 2025.
