![We rely on demand pull; no excess stock with dealers: Toyota](https://cdn.magzter.com/1547192204/1719859102/articles/Knro8jedllvTfCkNfoVsys/WE-RELY-ON-DEMAND-PULL-NO-EXCESS-STOCK-WITH-DEALERS-TOYOTA.jpg)
Last month, the Federation of Automobile Dealers Associations (Fada) raised an alarm about growing four-wheeler inventories at dealerships across India.
It said the dealers were holding about 550,000 vehicles, equivalent to 60 days' supply. This surplus stock could strain dealers financially due to increased interest expenses. To deal with this issue, Fada has started discussion with the Society of Indian Automobile Manufacturers.
Gulati said: "We have a different model. It is a 'pull' system rather than a 'push' system. Even earlier, we never had this issue because we produce only what the market demands."
This pull-based approach is more responsive to real-time market conditions than the traditional "push" model of producing and pushing inventories to dealers.
This story is from the July 02, 2024 edition of Business Standard.
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This story is from the July 02, 2024 edition of Business Standard.
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