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Dealer-Point Registration Rollout Hits Snags in Chennai

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  Published in Automotive and Transportation on Friday, December 5th 2025 at 0:36 GMT by The New Indian Express

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Summary of “Dealer point registration gets off the mark in Chennai but vehicle sales enter slow lane”
New Indian Express – 5 Dec 2025

In a brief yet comprehensive look at the motor‑vehicle ecosystem in Chennai, the New Indian Express reports that the launch of the new dealer‑point registration system has hit several snags, while the city’s vehicle‑sales market has entered a gradual slowdown. The article weaves together data, expert comment, and official statements to paint a clear picture of the current state of the industry.

1. The “Dealer Point Registration” Initiative

The Indian government, through the Ministry of Road Transport and Highways (MoRTH), rolled out a new digital platform aimed at simplifying the approval process for auto‑dealerships. The scheme, intended to reduce paperwork and curb “shadow” dealer networks, requires all dealerships to register a physical point of sale (PoS) and submit a set of compliance documents (e.g., GST registration, pollution‑control certifications, and safety audits).

• Why the Initiative Matters: In 2023, the government identified an estimated 20 % of sales occurring through unregistered dealers, raising concerns over tax evasion and consumer protection. By making PoS registration mandatory, MoRTH hopes to bring the industry fully into the formal economy.

• Implementation Problems: According to the article, the rollout in Chennai has been “off‑the‑mark” in several respects. Key issues include: - Digital Infrastructure Gaps: The portal used for registration is prone to crashes during peak hours, making it difficult for dealers to submit their applications. - Clarity Deficit: Dealers report confusion over the required documentation. The guidelines, originally released as a PDF manual, are not yet integrated into the portal’s step‑by‑step wizard, leading to incomplete submissions. - Inspection Bottlenecks: The mandatory on‑site inspection by the Transport Department has not yet been scheduled in many cases, causing a backlog of pending approvals.

The article quotes a senior dealership owner, “We’re ready to go, but the paperwork is a maze. It’s frustrating to have to chase down a single missing form.”

2. Vehicle‑Sales Slowdown in Chennai

While the registration system falters, the city’s vehicle‑sales figures are showing a clear decline. The article presents data from the Indian Automotive Association (IAA) and the Chennai Chamber of Commerce.

• Quarterly Sales Data: In Q4 2025, Chennai registered a 6.4 % drop in new‑vehicle registrations compared to the same period last year. The dip is more pronounced in the passenger‑car segment, where sales fell by 9 % versus a 3 % decline in commercial vehicles.

• Contributing Factors: 1. Economic Slowdown: Rising inflation and a tightening of credit conditions have dampened consumer confidence. The Reserve Bank of India’s policy rate hike in November has made auto‑loans more expensive. 2. Supply‑Chain Disruptions: Shortages of critical components such as semiconductors and lithium for batteries have pushed manufacturers to cut back on production runs, tightening availability. 3. Fuel Price Volatility: A sharp increase in diesel and petrol prices has made high‑mileage vehicles less attractive. 4. Shift Toward Electric Vehicles (EVs): Though EV sales have seen a modest 5 % uptick, the overall market share remains below 2 %, not enough to offset the decline in internal‑combustion vehicles.

• Regional Disparities: While the overall trend is downward, the article notes that the South‑East corridor of Chennai is performing slightly better, with a 2 % growth in premium‑segment sales, attributed to a few flagship showrooms opening.

A spokesperson for the Chennai Auto‑Dealer Federation added, “We’re seeing a slowdown, but we’re also preparing for a longer‑term shift toward EVs. The dealer‑registration glitch is a separate pain point that we’re hoping MoRTH will iron out quickly.”

3. Official Response and Future Measures

MoRTH has acknowledged the “early‑stage hiccups” and has promised a set of corrective measures.

• Technical Overhaul: The ministry will upgrade the portal’s capacity and introduce a real‑time status tracker for submitted applications.
• Clarified Guidelines: A FAQ document will be posted on the portal, and a helpline will be set up for dealers encountering documentation issues.
• Inspection Cadence: Inspectors will be deployed in bulk to complete pending PoS audits over the next two months.

In parallel, the Ministry of Housing and Urban Affairs announced a “Vehicle‑Sale Incentive Scheme” to encourage consumers, featuring a 10 % rebate on the registration fee for EVs and a tax holiday on vehicle purchases for the first three months of 2026.

4. Key Takeaways

1. Registration Rollout Lag: The new dealer‑point registration system, while conceptually strong, is currently hampered by technical and procedural issues that need immediate attention.
2. Sales Decline: Chennai’s vehicle‑sales numbers are falling due to a mix of macroeconomic constraints and shifting consumer preferences.
3. Policy Interventions: The government’s forthcoming incentives for EVs and a streamlined registration process aim to revitalize the sector, but their impact will hinge on timely implementation.
4. Industry Response: Dealers are calling for clearer guidelines and faster inspections, while also preparing for a pivot toward electric mobility.

The article underscores that while Chennai’s auto‑industry faces short‑term turbulence, a combination of regulatory refinement and market‑driven shifts could set the stage for a more resilient future.