Key Points
BENGALURU, Nov 6 (Reuters) - India's retail vehicle sales fell 7.7% from a year earlier in October, a dealers' body said on Monday, adding that a build-up of inventory of passenger vehicles (PV) was a cause for concern...
The average inventory for the PV segment ranged from 63 days to 66 days in October, an all-time high, the Federation of Automobile Dealers Association (FADA) said..
Unless the stock is liquidated during the Diwali festival, when Indians generally make increasingly large-ticket purchases, automobile retailers would be hurt, FADA President Manish Raj Singhania said in an interview...
"Year-end discounts and the year-change of models will further distress dealers in terms of discounting while offloading these vehicles in the market," Singhania added.. High inflation, coupled with the weakest monsoon since 2018 in India, has made vehicles less affordable for the country's rural population...
The industry body is counting on Diwali and the harvest season to boost demand and sees November retail sales rising 10%-15% across segments, led by three-wheelers and two-wheelers, Singhania said.. "Agriculture produce started coming in November and the government has raised the minimum selling price of produce -all of this will ensure that money finally gets in the hands of farmers," he said...
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