A sales bump for cars in the run-up to festive season may be a myth, show retail numbers
such as Dussehra. About 1.15 million vehicles were registered until 29 October, showed data from Vahan. Besides, registrations plunged 26.84% in October from a year earlier.
According to Avik Chattopadhayay, founder of the brand consultancy Expereal, vehicle manufacturing companies are to blame as they did not recalibrate their production cycles on a quarterly basis while dealers too have failed to raise a complaint on this practice before.
“Dealers have been complaining this year as other issues have hit them hard. This inventory pile up happens twice a year but a 22% drop in sales was never expected. The companies also give compensation to dealers but usually it comes at the end of the year. In the second quarter usually registrations are around 65-70% of the wholesales,” explained Chattopadhayay.