Indian Auto Sector: Several lakh cars of the country have remained unsold. Car dealers have the highest inventory of unsold cars in the last four years. At the same time, fresh bookings have also started decreasing. However, this will make it easier to meet the demand for cars. Many car companies believe that the inventory levels are fine and there is no reason to worry at the moment. The number of cars unsold by car dealers has reached almost 3,00,000 units.
According to media reports, the value of unsold vehicles is $ 2.5 billion (about Rs 20,631). This figure is the highest after September 2019. Apart from this, the cancellation rate of cars has also increased. Till a few months ago, the cancellation rate used to be 10 per cent of the total booking on an average, which has now increased to 15-20 per cent.
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Delivery of 8 lakh vehicles stopped
Apart from this, there is an outstanding order of 8,00,000 vehicles in the market, which means that so many vehicles have not been delivered. Sales have got a big boost in the recent years, and now the production of the cars is also slowly going back to normal levels. There has been an increase in bookings and inquiries for cars since the last few quarters. But there has been some softening due to increase in price and higher interest rate.
15% fall in demand
According to the estimates of the Indian Automobile Industry, the passenger car market will deliver around 3,20,000 units in March. According to the Federation of Automobile Dealers Association (FADA), retail sales are likely to remain strong. Apart from this, fresh bookings and inquiries for select models and specific variants are also expected to improve. However, booking at one level is 15 percent less.
Demand expected to improve
There is a decline in the number of customers booking new cars in the country. The inventory of vehicles with the car dealers has increased. However, the demand is expected to increase in the coming times. The inventory has been increasing since the last four months. The lowest inventory was recorded in December 2022, which was around 1,00,000 units.
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