According to FADA, its members have around 730,000 units in their possession, enough to cover more than two months of sales. For its part, SIAM says that stock in dealerships is around 400,000 units.
Domestic passenger vehicle (PV) wholesale sales fell 2-3 percent year-on-year to around 355,000 units in August due to weak demand as companies cut production to ease pressure on dealers who have high unsold inventory.
This is the second consecutive month that wholesale sales of photovoltaic energy have declined due to low demand and high stocks at distributors. In July, sales of photovoltaic energy decreased by 2.5 percent year-on-year to 341,510 units.
Partho Banerjee, executive director, marketing and sales, Maruti Suzuki India (MSIL), said the company reduced its shipments to dealers by around 13,000 units in August. Wholesale sales of MSIL, India’s largest carmaker, stood at 1,43,075 units, down 8.4 per cent year-on-year.
Banerjee said that earlier in August, MSIL dealers had stocks to cover sales for 38 days, but now that amount has come down to 36 days. “We see that our channel partners (dealers) have reasonably good stocks to sell the vehicles. We are continuously trying to reduce the stocks,” he added.
“As the festival season is approaching, it is not prudent to further reduce the stock of the dealers. Our dealers have an average of 36 days of stock now, which is fine. As Navratri will begin in early October, we do not intend to further correct the stock of our dealers as it may lead to loss of sales,” he said.
He said it is difficult to give exact wholesale sales figures for the entire photovoltaic industry on a Sunday. However, he added: “We believe that domestic wholesale sales of the photovoltaic industry should be around 350,000-355,000 units.” In August 2023, domestic wholesale sales stood at about 361,000 units.
As demand for cars slows in India, dealer stock levels across the industry have risen to alarming levels. The situation is so critical that the Federation of Automobile Dealers Associations (FADA) has written two letters to the Society of Indian Automobile Manufacturers (SIAM) in the last few months to resolve the issue.
According to FADA, its members have around 730,000 units in their possession, enough to cover more than two months of sales. For its part, SIAM says that stock in dealerships is around 400,000 units.
Hyundai, India’s second-largest carmaker, reported an 8 per cent year-on-year decline in wholesale sales in the country at 49,525 units. Tarun Garg, chief operating officer, Hyundai Motor India, expressed hope that the updated Alcazar sports utility vehicle (SUV), which will be launched soon, will help the company drive “strong growth in the festive season.” SUVs remain popular among customers, with the industry’s share of SUV sales at 54.9 per cent in August.
First published: September 1, 2024 | 19:48 IS
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.