The inventory levels of passenger vehicles (PVs) are believed to have come down substantially for the first time in many years since September 22 when GST cuts were rolled out.
The inventory levels in September are expected to be at 30-40 days, compared to 50-55 days normally in any month. This is a severe drop from September 2024, when inventory levels reached 80-85 days, equivalent to 7.9 lakh vehicles worth ₹79,000 crore, due to aggressive OEM dispatches, according to Federation of Automobile Dealers Associations (FADA) numbers.
“The sales are high during every Navratri, but this year is a bit different when compared to any other year because of GST 2.0. There is a pent-up demand for cars for sure as people who were holding their purchase for the last six months or a year are also buying now,” a Delhi-based analysts told businessline.
Huge discounts
Also, many original equipment manufacturers (OEMs) are offering attractive discounts, over and above the GST rate cut, which is also leading to more footfalls at showrooms, he said.
For instance, companies such as Maruti Suzuki India (MSIL) and Tata Motors have reduced the prices of their products heavily for a limited period till September 30.
MSIL has reduced the prices of Alto K10 Lxi by around ₹99,000; Celerio Lxi around ₹94,000 and WagonR Lxi by around ₹79,000. Similarly, Tata Motors has reduced prices of Tiago by up to ₹1.20 lakh, Tigor by up to ₹1.11 lakh and Punch by up to ₹1.58 lakh.
“The OEMs are firing on all cylinders when it comes to production right now. Some OEMs had halted productions during the end of August, but since September, they producing vehicles with all strength. It will be tough to calculate at the moment, but this September could record one of the highest sales in a month. On a rough calculation, there could be an inventory of minimum three-lakh cars at the moment,” said a Mumbai-based sector analyst.
Meanwhile, dealers hope the OEMs do not push for more inventories this year, so that a similar situation like last year does not arise. In an anticipation of higher sales, OEMs pushed a large inventory last year in the same month.
