COVID-19 impact: Vehicle inventory piles up due to muted demand
June will be an important month for the auto industry to clear up all the existing inventories in the system. CNBC-TV18 has learnt that nearly 5.5 lakh vehicles registrations took place in May and wholesale dispatches were fewer than the retail sales.
June will be an important month for the auto industry to clear up all the existing inventories in the system.
CNBC-TV18 has learnt that nearly 5.5 lakh vehicles registrations took place in May and wholesale dispatches were fewer than the retail sales.
Companies like TVS Motor Company said on record that they have deliberately dispatched fewer vehicles to automobile dealers in May considering the burden on them already, the demand has been muted and there is a lockdown situation in different parts of the country.
According to sources, the passenger vehicle (PV) inventory is currently in the range of 10-15 days, two-wheeler inventory is in the range of 25-30 days, commercial vehicle (CV) inventory would be in the range of 35-40 days and this inventory has been piling up since March.
The Society of Indian Automobile Manufacturers (SIAM) has written to 18 state governments asking them to allow online registration of vehicles. Because the suspension of registration process is hampering the sale of automobiles during this lockdown period.
Watch the accompanying video of CNBC-TV18’s Parikshit Luthra for more details.
(Edited by : Bivekananda Biswas)
First Published: Jun 2, 2021 4:46 PM IST
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