Now Reading: Festive car sales face supply crunch as inventories run low
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Festive car sales face supply crunch as inventories run low
Car sales this festive season may not fully reflect strong demand as the top five manufacturers, which account for over 85% of the market, struggle with tight inventories and supply constraints. Market…
Car sales this festive season may not fully reflect strong demand as the top five manufacturers, which account for over 85% of the market, struggle with tight inventories and supply constraints. Market leader Maruti Suzuki has pending bookings for more than 2 lakh units, while its network stock is enough for only 16 days of sales, well below the typical one-month inventory it carries during the festive period.
The second leg of the festive season runs from Navratri on October 11 through Diwali on November 10. Industry executives said vehicle availability is a key challenge. Hyundai Motor India has four to five weeks of inventory and is advancing a third shift at its Talegaon plant ahead of a midsize SUV launch next month. Industry growth is expected to taper to 5-6% in the second half of the fiscal year, on a high base.
Indian Opinion Analysis
Maruti's automated production lines are expected to stabilise only by December, meaning the company will enter the peak selling window with half its usual stock. The festive period accounts for a third of annual car sales, so any shortfall here will be hard to recover. With Maruti alone holding over 2 lakh pending orders, the real constraint is not demand but factory output. Watch for the December stabilisation of Maruti's new lines as the next signal on whether inventory can rebuild in time for the post-festive season.
India
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Source: economictimes.indiatimes.com
This brief was synthesised by AI from the source linked above.
