[ad_1]
Demand for cars fell by 5% in May.Companies have an inventory of 4 lakh cars.There was a decrease in demand due to elections and heat.
Delhi. In May 2024, the inventory of unsold cars with car companies has reached close to 4 lakh units. This is the second time that the largest unsold inventory is being seen with car companies. The last such large inventory was seen in September 2018 before the Corona epidemic. According to a report by Economic Times, the value of the inventory of cars is more than Rs 44,000 crore. After good demand for cars in the last three years, now sales have declined. According to the report, there has been a 5% decrease in the demand for cars in May this year as compared to May last year.
Car companies believe that there are many reasons behind the fall in demand, such as the election environment, absence of wedding season and intense heat in Delhi-NCR and other cities of the country.
Vehicle shipments increased by 4%
By the end of May 2024, car companies have shipped 3,40,000-3,50,000 vehicles to dealers, which is 4-4.5 percent more than the same period last year. The report said that the planned shutdown by some companies will try to reduce production volumes and inventory. The report quoted Kia India National Sales Head Hardeep Singh Brar as saying, “Before COVID-19, the stock for the industry used to be in the range of 45 days. After the pandemic, it has come down to 2-3 weeks.
He further said, “The forecast for the monsoon is good. With inflation under control, interest rates are expected to come down towards the end of the year. Given the high base for the full year, sales growth is likely to remain in single digits.” The report quoted an industry official as saying that the domestic automotive sector is set to end this month with a network inventory of around 4,00,000 vehicles, which will be an all-time record level of vehicle inventory.
Tag: auto news, Car Bike News
first published : May 30, 2024, 3:56 pm IST
[ad_2]
