SUVs push car sales in India jump by 32% in October, yet unsold car stocks rise
In October, car sales by Indian dealers surged by 32.4%, driven by festive demand, particularly for SUVs, along with the introduction of new models and promotional deals. Despite this growth, inventory levels continued to stay elevated, according to a statement from a dealers’ association on Wednesday.
According to data provided by the Federation of Automobile Dealers Association (FADA), there was an increase in sales by dealers to customers, with figures rising to 483,159 units this month compared to 364,991 units the previous year.
Commencing in early October this year, the festive season in India, a period known for significant consumer spending, kicked off ahead of last year’s mid-October start, resulting in a boost in sales for the month.
Retail sales saw a significant surge, recording a double-digit growth; however, wholesales, which refer to carmakers’ sales to dealers, remained stagnant or slightly decreased last month, with the exception of SUVs sales showing positive performance.
FADA reported that although retail sales remained robust and wholesales were sluggish, the average time a car spent in a showroom before being sold increased by five days in October. This extended the inventory days to 75–80, well above the ideal threshold of approximately one month.
The dealers’ association indicated that discounts could persist until the conclusion of the current year.
FADA reported that although small cars have predominantly constituted the unsold vehicles, there has been a gradual increase in the percentage of SUVs.
Car manufacturers and dealers reported a decrease in showroom footfall between April and September due to scorching heat followed by heavy rainfall. Consequently, numerous customers postponed their buying decisions, opting to wait until the festive season to take advantage of potentially greater discounts.
On November 14, FADA will announce retail sales figures for a 42-day period that covers October and November. This extended duration considers the varying dates of festivals compared to the previous year.
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