Why Indian automakers saw the worst festive season sales in November
- Automakers in India reportedly witnessed the lowest festive season sales due to higher fuel prices and low consumer demand.
- India’s auto industry reportedly saw a 20% year-on-year decline in overall demand during October and November.
- Car and two-wheeler makers also had to raise prices because the falling rupee increased the price of the imported raw material.
The entire auto industry suffered weak sales on the back of 20% year-on-year decline in the overall demand between October and November, said the report, citing Saharsh Damani, Chief Executive Officer of Federation of Automobile Dealers Association.
Even though the enquiries for two-wheelers and passenger cars by potential customers were high, they didn’t transform into sales, according to the report. Car and two-wheeler makers also had to raise prices because the falling rupee increased the customs duty imposed on auto raw materials.
The Indian currency shed 15% this year by sliding to an all-time low of 74.48 against the US dollar in October.
As a result, the industry saw a pile up in inventory, from a ‘healthy inventory level’ of 21 days to 45-50 days.
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