Despite festive season, Rs 7.90 lakh cars lying unsold, it is worth...; here's the reason
Diwali car sales dip leaves dealers with record 7.90 lakh unsold vehicles
Car sales slump during Diwali, leaving dealers with record 7.90 lakh vehicles in inventory, valued at...
Car sales during this Diwali season have seen a sharp drop, leaving car dealers across India with a record-high inventory. According to a report from The Economic Times, dealers now have around 80-85 days’ worth of unsold cars, translating to about 7.90 lakh vehicles collectively worth Rs 79,000 crore. This unusual buildup is partly because automakers pushed high volumes of cars to dealerships, expecting strong sales that ultimately didn’t materialize. In fact, car sales have dropped by 18.81%, as reported by the Federation of Automobile Dealers Associations (FADA).
The slowdown in sales began in May this year, and since then, inventories have been gradually increasing. Interestingly, this downturn has also impacted vehicles within the ₹10-25 lakh price range, a category that had been one of the biggest growth drivers in the car market after the pandemic.
Various factors have contributed to this slump. One significant reason is the unusual weather patterns over recent months. An extra-hot summer followed by heavy monsoon rains has caused many potential buyers to delay their car purchases. Additionally, there’s been a preference shift towards newer models like the Maruti Suzuki Fronx and the newly launched Tata Curvv. These newer models have seen comparatively better demand, standing out in a market otherwise facing sluggish sales.
The manufacturers with the most unsold inventory are Maruti Suzuki and Hyundai, followed by Nissan and Citroen. This high level of unsold stock poses a challenge for automakers and dealerships, who now face the pressing task of clearing their inventory in the coming months amid these market conditions.
- Cars
- diwali sale
- Car update
- Car sales
- Diwali slump
- Inventory
- Dealership
- unsold cars
- economic times
- Federation of Automobile Dealers Associations
- FADA
- 80-85 days
- 7.90 lakh vehicles
- ₹79
- 000 crore
- automakers
- low sales
- 18.81% decline
- May slowdown
- inventory rise
- ₹10-25 lakh segment
- post-pandemic growth
- Extreme Weather
- hot summer
- heavy monsoon
- buyer delay
- Maruti Suzuki
- Tata Curvv
- Hyundai
- Nissan
- Citroen
- Maruti Suzuki Fronx
- new models
- demand
- unsold stock
- automaker challenge
- market conditions
- dealership inventory
- Diwali season
- price segment
- luxury cars
- consumer demand
- environmental factors
- sales growth
- market shift
- Automotive Industry
- weather impact
- purchasing delay
- festival season
- Economic Impact
- inventory management
- Supply Chain
- vehicle stockpile
- FADA data
- industry trends
- economic conditions