Key Points
New Delhi:The record inventory of cars and SUVs worth Rs 73,000 crore piling up at dealerships is due to over ambitious manufacturers and not a slowdown in customer demand, according to the Federation of Automobile Dealers Associations (FADA)...
The FADA, which represents over 15,000 automobile dealerships, said the inventory levels have surged to a high of 67 to 72 days, as opposed to the desired level of 30-day paid-up stock..
However, this is more to do with an oversupply than a fall in demand, it said.. There is no slowdown in demand..
FADA has also written to the Society of Indian Automobile Manufacturers (SIAM), twice in two months, protesting the alleged dumping of stock on dealers...
Regarding questions raised about FADAs own stock level metrics, Singhania explained that FADA takes the wholesales figures from SIAM, and retails sales figures from the Vahan portal...
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