Car inventory at dealerships may hit 4-year high
Car dealers in India are estimated to end the current month with a four-year high stock as automakers resorted to pumping up inventory in anticipation of a good festive season, driven by pricier SUVs. They are estimated to end the current month with stocks of 310,000-325,000 units worth ₹24,000-26,000 crore, equivalent to 8-9% of annual sales of a car company, as per industry estimates.
The expected inventory is a 7.6% jump from September 2019 levels when car inventory had reached around 300,000 units.
The sales push also comes as companies seek to make the most of the new model launches and an eased availability of semiconductors.
The latter had weighed on the festive season sales last year.
Encouraged by an overall positive sentiment and a flurry of new launches, carmakers are prepping up for record sales during the three-and-a-half-month period of the festive season, which has begun with Onam and will end with Bhai Dooj in November. The festive season in India, marked by the purchase of high-ticket items, accounts for 25-30% of a carmaker's annual sales.
«With production getting better since July, there has been a build-up of inventory in the retail network in anticipation of this large volume.
The expected network stock levels should be above 300,000, a level seen earlier almost 4 years back in September 2019,» said Shashank Srivastava, senior executive officer-sales and marketing, Maruti Suzuki India.
Others agree. «The stocks will easily surpass the 2019 levels given the current scenario marked by production ramp up at most companies,» said an executive at a car company.
In anticipation of a very good festive season, automakers have been pumping up inventory, said Manish Raj Singhania, president, Federation of
