New Delhi. There has been such a decline in car sales during Diwali this year that dealers have accumulated a record level of inventory stock of 80-85 days. This stock is of approximately 7.90 lakh vehicles, the total value of which is said to be around ₹ 79,000 crore. This information has come to light in an Economic Times report.
According to data from the Federation of Automobile Dealers Association (FADA), car sales have declined by 18.81% this year. Despite this, automakers had increased the stock of vehicles even amid low sales, due to which dealers have increased inventory. There has been a decline in sales since May, due to which the level of inventory with dealers continued to increase.
Impact visible on mid-range cars also
Interestingly, sales of mid-range cars priced between ₹10-25 lakh have also been affected. This category was the main driver of sales growth after the pandemic, but it has also seen a slowdown this year.
Impact of weather and new models
Unusual weather patterns are also being considered as one of the reasons for delay in car purchase. This year, the extreme heat followed by heavy monsoon forced buyers to postpone their plans. At the same time, the demand for new models like Maruti Suzuki Franks and the recently launched Tata Curve has remained stable, which have felt less impact of this recession.
Large manufacturers have the highest inventory
Big companies like Maruti Suzuki and Hyundai have the highest dealer inventory, while companies like Nissan and Citroen have also accumulated sufficient stock.
Tags: auto news, auto sales, Passenger Vehicles
FIRST PUBLISHED: November 2, 2024, 15:48 IST