With sustained demand owing to the wedding season, and entry-level pickup, the passenger vehicle and two-wheeler inventory levels saw a dip in March.
The passenger vehicle inventory was between 40- 45 days while the two-wheeler inventory was between 10-12 days in March according to the Federation of Automobile Dealers Associations (FADA).
In February the passenger vehicle inventory was between 50-55 days while the two-wheeler inventory was between 10-15 days.
Further, in January, the passenger vehicle inventory was between 50-55 days while the two-wheeler inventory was between 10-15 days.
“The inventory with the dealers reduced further in March which is a positive sign. The retail market is doing good across the country including the hinterland. We are expecting the inventories in passenger vehicles to reduce up to 30 days,” said Manish Raj Singhania, President of the Federation of Automobile Dealers Association to businessline.
The automobile dealers association is expecting positive growth with new product launches including electric vehicles with OEMs introducing better supply chains to meet demands.
“The sentiment is cautiously optimistic, with the industry banking on improved customer engagement and financing schemes to boost sales. However, it faces challenges like the high base in the PV segment and intense competition. The focus is on overcoming these hurdles with innovation and strategic market,” said FADA.
Market rating agency ICRA is expecting the automotive industry’s growth across segments to remain at varied levels in FY2025.
“Aided by a preference for personal mobility and stable semiconductor supplies, passenger vehicle (PV) industry volumes are estimated to reach an all-time high of ~4.1 million units in FY24 (representing a growth of 6-9% over FY2023). Lower growth expectation for next year partly stems from a high base and, to some extent, by waning pent-up replacement demand, which supported the industry over the past couple of years,” mentions the ICRA report.