Carmakers continue to pile up their wares at dealerships amid fewer takers, widening the demand-supply mismatch afflicting the world's third largest automotive market.
The passenger-vehicle sales—or dispatches to dealerships from the factory floor—rose 3% year-on-year to 3,37,757 units in June 2024, according to data released by the Society of Indian Automobile Manufacturers on Friday. That compares with retail sales of 2,81,566 units during the same time, according to data released by Federation of Automobile Dealers Association on July 5.
That's a gap of more than half-a-lakh units in just one month.
The comparison between wholesales and retail assumes significance at a time when the wider automotive industry is sitting on an inventory of 65-70 days. More than 7 lakh cars, valued in excess of Rs 70,000 crore, are languishing in stockyards.
Auto Sales In June 2024: Other Key Highlights
Two-wheeler sales up 21.3% at 16.1 lakh units.
Three-wheeler sales up 12.3% at 59,544 units.
All segments posted growth in the first quarter of fiscal 2025, over the same period last year, SIAM President Vinod Aggarwal said in a statement, without addressing the inventory issue crippling the car industry. “While passenger and commercial have witnessed moderate growth, two-wheelers and three-wheelers have posted very handsome growth in double digits," he said.
He exuded confidence on sustained demand for the rest of the year.
“With a positive outlook on the monsoon and upcoming festive season, the automotive sector is poised to perform better in the balance part of the year.”
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