look news india
Mumbai: With wide stock of various products including cars, TVs, smartphones, two-wheelers in the country, such products are expected to see huge discounts and incentives during the festivals of the current year.
Festivals such as Ganpati, Dussehra, Diwali and Christmas are good opportunities for companies to clear their inventory. It is estimated that 25 to 30 percent of the total annual sales of luxury products come from Oman during the Christmas season.
In addition to inflation, sales of luxury goods have slowed due to relatively high lending rates, resulting in overstocking by companies and dealers.
According to the reports received, the list of unsold cars stood at 4.20 lakh at the end of August, which was 4.10 lakh at the beginning of the month. However, dealers are claiming this figure to be seven lakh.
The smartphone inventory was also enough to last for two and a half months at the end of August, a research firm report said, which is usually enough for one to one and a half months. Keeping this fact in mind, the possibility of seeing heavy competition in sales during the current year's festivals cannot be ruled out.
Both offline and online sales are likely to see discounts and incentives to clear the accumulated stock.
Sources also said that auto manufacturers are currently forced to postpone new launches due to inventory shortages. Activity in the country's manufacturing sector fell to a three-month low in August as a result of a sharp drop in demand. Manufacturers are also adopting a cautious stance in view of weak demand.