<p>Dealers’ inventory of passenger vehicles and two-wheelers surged in August as poor monsoon seems to have hit sales ahead of the festive season, even as auto manufacturers registered record dispatches during the month.</p>.<p>According to data released by the Federation of Automobile Dealers Association (FADA) on Tuesday, the average inventory for passenger vehicles ranges from 58-63 days at the end of August 2023 against 50-55 days in the previous month. In August 2022, the average inventory stood at 30-35 days.</p>.<p>The average inventory for two-wheelers ranges from 23-25 days, data released by FADA showed.</p>.Automobile retail sales see 9 per cent growth in August: FADA.<p>This means dealers are storing vehicles for 58 to 63 days before being able to sell them. While the data released by the auto manufacturers present a rosy picture, the dealers data clearly indicate strain in demands.</p>.<p>“After a prolonged period of stagnation, rural demand is showing signs of a positive resurgence. However, this recovery remains tenuous, contingent on the performance of the final phase of the monsoon season,” FADA President Manish Raj Singhania said in a statement. </p>.<p>Lack of sufficient rainfall could precipitate a rise in inflation, adversely affecting consumer purchasing power and diminishing demand, he added.</p>.<p>Major automobile manufacturers registered robust growth in dispatches to dealers in August. The country’s largest carmaker Maruti Suzuki sales surged by 16.4% to 165,402 units in August. Domestic sales of Mahindra & Mahindra surged by 26% in August on a year-on-year basis.</p>.<p>Retail sales by auto dealers rose at a slower pace of 9% in August. Lower sales growth by dealers indicates piling up of inventory.</p>.<p>On a year-on-year basis, two-wheelers sales increased by 6%, three-wheelers by 66% and passenger vehicles 6.5%, tractors by 14% and commercial vehicles by 3% during the month under review. </p>
<p>Dealers’ inventory of passenger vehicles and two-wheelers surged in August as poor monsoon seems to have hit sales ahead of the festive season, even as auto manufacturers registered record dispatches during the month.</p>.<p>According to data released by the Federation of Automobile Dealers Association (FADA) on Tuesday, the average inventory for passenger vehicles ranges from 58-63 days at the end of August 2023 against 50-55 days in the previous month. In August 2022, the average inventory stood at 30-35 days.</p>.<p>The average inventory for two-wheelers ranges from 23-25 days, data released by FADA showed.</p>.Automobile retail sales see 9 per cent growth in August: FADA.<p>This means dealers are storing vehicles for 58 to 63 days before being able to sell them. While the data released by the auto manufacturers present a rosy picture, the dealers data clearly indicate strain in demands.</p>.<p>“After a prolonged period of stagnation, rural demand is showing signs of a positive resurgence. However, this recovery remains tenuous, contingent on the performance of the final phase of the monsoon season,” FADA President Manish Raj Singhania said in a statement. </p>.<p>Lack of sufficient rainfall could precipitate a rise in inflation, adversely affecting consumer purchasing power and diminishing demand, he added.</p>.<p>Major automobile manufacturers registered robust growth in dispatches to dealers in August. The country’s largest carmaker Maruti Suzuki sales surged by 16.4% to 165,402 units in August. Domestic sales of Mahindra & Mahindra surged by 26% in August on a year-on-year basis.</p>.<p>Retail sales by auto dealers rose at a slower pace of 9% in August. Lower sales growth by dealers indicates piling up of inventory.</p>.<p>On a year-on-year basis, two-wheelers sales increased by 6%, three-wheelers by 66% and passenger vehicles 6.5%, tractors by 14% and commercial vehicles by 3% during the month under review. </p>