Indian carmakers produced more, dispatched less, and sold even fewer cars in August 2024, as demand continued to dwindle in the world's third largest automotive market.
Production of passenger vehicles in India rose 0.7% over the year earlier to nearly 3.77 lakh units last month, even as dispatches from the factory floor to the dealership fell 1.78% year-on-year to about 3.53 lakh units, according to data released by the Society of Indian Automobile Manufacturers on Friday.
Retail car sales—measured as vehicle registrations on the government's VAHAN website—fell 4.53% year-on-year to 3.1 lakh units in August 2024, according to a statement released by the Federation of Automobile Dealers Association on Sept. 5.
Therefore, the gap between production and actual sales is roughly 60,000 units in one month alone. That simply exacerbates the inventory overhang at the dealership end.
According to FADA, India's car dealerships are saddled with unsold stock worth Rs 77,800 crore, equivalent to 78 lakh vehicles or 70-75 days of inventory. The grim sales picture, thanks in no small measure to the unprecedented monsoon, now threatens to spill over into the festive season.
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