look news india
Mumbai: The number of unsold passenger vehicles with auto dealers has reached 7.80 lakh, worth a total of Rs 77,800 crore and the inventory is believed to be as large as 70-75 days. FADA has advised financial institutions, including banks, to be cautious while funding dealers with excess inventory.
Federation of Automobile Dealers Association (FADA) sources said that retail sales of Utaru vehicles in the country declined by 4.50 percent year-on-year in the month ended August due to heavy rains and congestion. People were less interested in buying vehicles due to heavy rains. Total vehicle sales increased by 2.88 percent in August.
Sales of Utaru vehicles stood at 309053 in August of the current year compared to 323720 Utaru vehicles in August 2023.
Sales have declined by 4.45 percent as compared to July. Not only ATVs but tractors and commercial vehicles have also seen a decline of 11.40 percent and 6 percent respectively. Despite a good monsoon in the country in the current year, the decline in tractor sales is worrying.
However, sales of two-wheelers and three-wheelers have increased by 6.30 percent and 1.60 percent respectively. Total retail sales of vehicles in August of the current year have been 2.88 percent higher than in August of the previous year.
Heavy rains have affected rural demand. FADA President Manish Raj Singhania also said that rural sales of two-wheelers have declined.
The country has received 16% more rainfall in August, which may affect crop irrigation. Due to excessive rainfall, floods have been witnessed in many parts of the country.
He also said that even though the festive season has begun, a slowdown in consumer purchases and heavy rains have raised concerns for the auto industry, with inventory levels reaching alarming levels. Singhania claimed that instead of reacting to the situation, auto manufacturers are continuously delivering vehicles to dealers, which has worsened the situation for dealers.
