BENGALURU, Nov 06 (Reuters): India's retail vehicle sales fell 7.7 per cent from a year earlier in October, a dealers' body said on Monday, adding that a build-up of inventory of passenger vehicles (PV) was a cause for concern.
The average inventory for the PV segment ranged from 63 days to 66 days in October, an all-time high, the Federation of Automobile Dealers Association (FADA) said. Inventory days refers to the average number of days it takes to sell a unit.
Unless the stock is liquidated during the Diwali festival, when Indians generally make increasingly large-ticket purchases, automobile retailers would be hurt, FADA President Manish Raj Singhania said in an interview.
"Year-end discounts and the year-change of models will further distress dealers in terms of discounting while offloading these vehicles in the market," Singhania added.
High inflation, coupled with the weakest monsoon since 2018 in India, has made vehicles less affordable for the country's rural population.
Entry-level vehicles from companies such as India's top carmaker Maruti Suzuki, Tata Motors, and Kia Corp contributed most to the inventory build-up.
Weak Oct car sales threaten inventory pile-up, warns Indian dealers' body
FE Team | Published: November 06, 2023 22:06:02
Weak Oct car sales threaten inventory pile-up, warns Indian dealers' body
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