The Federation of Automobile Dealers Associations of India's (Fada) vehicle registration data for October 2019 shows an overall increase of 4 percent compared to the same period in the previous year. However, the federation also compared registration figures for the 42-day festive season for both 2018 and 2019, and this year vehicle registration was down by 2 per cent.

Talking to CNBC-TV18, Vinkesh Gulati, VP of Fada, discussed the numbers. “In the last one year of decline that we have seen, two percent decline is not a major issue. The passenger vehicle has actually increased by one percent. So overall the sentiments are good for the industry. There was support from the banks and NBFCs, but as an association we feel this is just a small spike,” he said.

According to him, December is a good month because of model change or year-end models are sold.

“All the manufacturers give good discounts to liquidate the old models. This festive season saw pretty good discounts compared to previous years. However, I don’t know how much discounts the manufacturers will come up with again in December but we are positive that we will see good numbers,” Gulati added.