Full impact of the implementation of the budget proposal to restrict credit to new cars (50% LTV) and three-wheelers (25% LTV) will only be felt in March, JB Securities indicated in their monthly review.

According to them, motor car registrations have dropped by 40% on a month on month basis and three-wheelers have come down by 50% in the month of January. The report indicated that there has been an increase of used cars, especially Toyotas.

There had been a big bump in Hybrid used cars where Axio witnessed a notable increase (200+) and so did Hyundai Eons (100%). SUV registrations have increased slightly, driven by Vezels and Prados. A big Jump had been noticed in relation to registration of Mini Vans (268% increase) and the report said that Suzuki Every was the biggest mover.

“Three-wheelers may be a menace on the road but it has been a huge contributor in creating inclusive growth both in terms of being a production asset (taxi) and/or personal vehicle providing mobility to the owner which in turn increases his radius of employment opportunities, ability to work flexible work hours due to not being reliant on public transport, access to markets,” JB Securities said. They highlighted Bajaj losing market share to TVS as an interesting development where three-wheelers are concerned.

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