Amid the fall in car sales, a new crisis has arisen for automobile companies and dealers. The stock of cars is increasing with the dealers and companies are continuously increasing production capacity. From the common man’s point of view, the waiting period on many cars has reduced and there is a possibility of a fall in car prices in the future, but this is also a sign of a big crisis, to deal with which many companies are also considering reducing the fixed prices of some of their models.
Car stock increased from 67 to 72 days
Federation of Automobile Dealers Association (FADA) says that car sales were expected to increase by three to four percent, but companies have increased production capacity by 10 percent. FADA CEO Saharsh Damani says that earlier we used to have 30-32 days of stock based on the demand forecast, but now 67 to 72 days of stock of cars is available. Stock has been increasing for the last five months but sales are not increasing in proportion to that.
This is the big reason for the decrease in sales
FADA says that if the average price of cars was Rs 6 lakh before Corona, then today it has increased to Rs 10 lakh. People’s income has not increased in the same proportion as the prices of cars have increased after Corona.
Cars worth Rs 75 thousand crores lying in stock
At present, about 7 to 7.25 lakh cars are in stock in the warehouses of 15 thousand dealers and their 30 thousand outlets. Even if the average price of these cars is assumed to be Rs 10 lakh, cars worth Rs 70 to 75 thousand crores are standing in stock. On top of this, new cars are being made available to dealers every day by automobile companies.
Sale of old vehicles increased
An official associated with a company that resells four-wheelers says that there has been a boom in the sale of old cars. Especially in Delhi, Mumbai, Chennai and other major cities, most people are buying old cars.
Waiting on select models only
All the companies from Maruti to Hyundai are giving discounts and other offers on the purchase of cars. Discounts ranging from 60 thousand to 2.5 lakhs are being given on cars which vary according to the model and car. Dealers are also trying to sell cars by reducing their commission but even then there are not enough customers. Barring a few selected models, all models are available without waiting. Talking about waiting, barring the white coloured automatic top model cars, there is no waiting on any other.
