Automobile (auto) retail sales in India grew by an impressive 14 per cent in July compared to the same period last year, driven by a surge in the rural economy, good product availability, and product launches.
While passenger vehicles (PVS) saw a 10 per cent increase during this period, inventory levels have surged to a historic high of 67-72 days in PVs, equating to ₹73,000 crore worth of stock, according to the Federation of Automobile Dealers Associations (Fada).
This poses a risk to dealer sustainability. Inventory levels in July 2023 were only 50-55 days, equating to a stock worth $49,833 crore. In June 2024, inventory was between 62 and 67 days, with a stock value of ₹60,000 crore.
"As a market, we are doing well.
Our biggest concern is inventory, which is the highest ever. We are highlighting this to our original equipment manufacturer (OEM) partners. Earlier, inventory pile-ups used to occur for small cars; now they are happening across segments, including sport utility vehicles," said CS Vigneshwar, vice-president of Fada.
This story is from the August 06, 2024 edition of Business Standard.
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This story is from the August 06, 2024 edition of Business Standard.
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