Domestic passenger vehicle and two-wheeler wholesales will come down in the next few months as inventory levels remain high at the dealer level, according to rating firm India Ratings and Research (Ind-Ra).
The overall auto industry would, however continue, to grow in the next few months, it noted.
“With the festive season now over in India, the rating agency expects wholesale billings to moderate in the next couple of months, given that the inventory at dealer level for passenger vehicles (PVs) and two-wheelers is already at higher than the 21 days recommended by Federation of Automobile Dealers Association (FADA),” Ind-Ra said in a statement.
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However, it expected the overall automotive industry to continue to revive in the next two to three months, in line with improving economic indicators, it noted.
Over the past two-three months, original equipment manufacturers had been focussing on stocking-up at the dealership level ahead of the peak demand expected during the festive season in October-November. Consequently, production had surged since August.