Car dealer inventories rise despite retail sales of PVs up 4% in May

FADA initiates talks with OEMs on recalibrating production plans

Even as retail sales of passenger vehicles (PVs) grew 4 per cent year-on-year (Y-o-Y) in May, inventory levels have risen to 40-45 days, according to dealer sources. Dealers have initiated talks with carmakers on recalibrating production plans in order to get models for which there is greater demand.

“This could mean a drop in volumes for original equipment makers (OEMs) for a few months. But we have initiated talks with OEMs on this. Since interest rates are high, any inventory beyond 21 days pinches the dealer,” said Manish Raj Singhania, president, Federation of Automobile Dealers Associations (FADA).

According to the