डीलरों के पास लाखों कारों का भंडार, कार बिक्री घटने की पूरी कहानी ?|Kharcha Pani Ep 916

The Lallantop

9 Sept 202406:42

Summary

TLDRThe video highlights the growing challenges faced by car dealerships in India, where passenger car inventory has surged significantly. Reports show around 8 lakh cars worth approximately ₹77,000 crore are sitting unsold, with stockpiles lasting up to 75 days. Factors contributing to this slowdown include a natural decline after the post-pandemic sales boom, reduced demand for entry-level cars, the launch of new models, and adverse weather conditions. Despite festive seasons, sales continue to dip, leading car manufacturers to cut production and offer significant discounts to clear excess inventory.

Takeaways

🚗 Car dealers in India are facing a significant inventory backlog with nearly 8 lakh cars stuck in stock.
📉 The total value of these unsold cars is estimated to be around 77,000 crores, indicating a substantial financial burden on dealers.
🔢 According to the Federation of Automobile Dealers Associations (FADA), car dealers across India have a stockpile equivalent to about 70 to 75 days of sales, which is a significant buildup.
📉 Post-COVID, car sales have seen a drastic drop, with the first instance of such a significant slump in sales.
🌡️ The script suggests that factors like harsh weather conditions, including severe heat and heavy rains, have impacted car sales negatively.
🚗 The report from The Indian Express identifies five major reasons behind the decline in car sales, including the aftermath of COVID-19, chip shortages affecting production, and a saturation in the market due to increased sales in the past three years.
📉 Launches of new car models have led to a decreased demand for older models, causing a backlog of inventory at dealerships.
🔋 The popularity of certain car models, including electric vehicles, has waned, contributing to the sales slump.
🌍 Climate change concerns and environmental awareness have influenced consumer behavior, potentially leading to a shift in preferences away from traditional vehicles.
💸 Car manufacturers and dealerships are offering heavy discounts and incentives to clear the backlog and stimulate sales.

Q & A

What is the current issue faced by car dealers in India?
-Car dealers in India are facing a significant inventory backlog, with a large number of cars piling up in their stockyards.
How many cars are estimated to be in stock across car dealers in India?
-According to the report, there are approximately 8 lakh cars in stock across car dealers in India.
What is the approximate total value of the cars in stock at car dealers in India?
-The total value of the cars in stock is estimated to be around 77,000 crores.
What is the average stock duration for car dealers in India as per the script?
-The average stock duration for car dealers in India is about 70 to 75 days, which is roughly two months.
What is the impact of the COVID-19 pandemic on car sales as mentioned in the script?
-The COVID-19 pandemic has led to a drastic drop in car sales, with the market experiencing a significant slump despite the festive season.
What is the total stock of passenger cars in India according to the script?
-The total stock of passenger cars in India has reached approximately 7.8 lakh vehicles.
How has the sales trend of cars been in the recent months as per the script?
-Car sales have been continuously declining, with a significant year-on-year drop in July and a further decrease in August.
What are the five major reasons behind the decline in car sales as per the script?
-The five major reasons behind the decline in car sales are the aftermath of the COVID-19 pandemic, chip shortages affecting production, a decrease in demand for older models due to new launches, a shift in consumer preference towards entry-level cars, and climate change affecting buyer behavior.
What steps are car manufacturers taking to manage the inventory backlog as mentioned in the script?
-Car manufacturers are considering reducing production and adopting new strategies to increase sales, such as offering heavy discounts on models that have been sitting in inventory for a long time.
How has the demand for electric vehicles been affected as per the script?
-The demand for electric vehicles has seen a decline, with fewer new customers shifting from traditional cars to electric vehicles, leading to a backlog of unsold electric cars.
What is the current scenario regarding discounts and offers on cars in India as per the script?
-Car manufacturers are offering heavy discounts and incentives to clear the inventory backlog, especially on models that were previously in high demand.

Outlines

00:00

🚗 Car Dealerships Struggle with Inventory Overstock

Indian car dealerships are facing a significant challenge due to an overstock of passenger cars. According to the Federation of Automobile Dealers Associations (FADA), there has been a substantial accumulation of unsold vehicles across the country. A report from The Indian Express indicates that nearly 8 lakh cars are stuck in dealerships, with an estimated total value of around 77,000 crores. FADA's data suggests that car dealers nationwide have a stockpile equivalent to approximately 70 to 75 days or about six months of sales. This is the first time post-pandemic that car sales have seen such a significant downturn. Despite the festive season, the market is under considerable pressure. FADA's chairman, Manish Raj Singhania, has stated that cars are now standing in the godowns for 70 to 75 days. The total stock of passenger cars across the country has reached approximately 7.8 lakh vehicles, with a total cost of 78,000 crores. However, the Society of Indian Automobile Manufacturers (SIAM) believes that there are about 4 lakh cars in stock at the dealers. SIAM suggests that car companies, considering the stock, could reduce production and adopt new strategies to increase sales. Car sales have been continuously declining, with a significant drop in July, both in terms of year-on-year and month-on-month comparisons. Various factors are attributed to this downturn, including the post-COVID market recovery, production cuts due to chip shortages, the launch of new models affecting the demand for older versions, and a shift in consumer preference towards entry-level cars. Additionally, the impact of climate change, such as heatwaves and heavy rains, has also affected car sales. The report from The Indian Express identifies five major reasons behind the decline in car sales, including the significant fluctuation post-COVID, production adjustments by car companies, the launch of new models, a decrease in demand for electric vehicles, and the influence of weather conditions on buyer behavior.

05:00

🛒 Car Sales Strategies Amidst Overstock and Discounts

In response to the overstock and declining sales, car manufacturers and dealerships have been offering significant discounts and incentives to clear their inventory. Consumers are, however, holding off on purchases in the hope that further price reductions or more attractive discounts may be introduced in the future. This strategy has led to a decrease in production by car companies and the introduction of attractive discounts on models that previously had long waiting periods, such as Hyundai and Safari. Maruti-Suzuki, one of the top-selling car brands, is now offering substantial discounts on its vehicles. According to a report from Business Standard, the country's largest car manufacturer has been offering discounts on models that were in high demand recently. The report also mentions that the current crisis has led car companies to reduce production and offer substantial discounts to clear their inventory. The bulletin ends with an invitation for viewers to share their thoughts on the information provided and to stay tuned for the next episode, which will cover other news from around the world.

Mindmap

Keywords

💡Car Dealer

A car dealer is a business or individual that sells new or used cars at retail. In the context of the video, car dealers are facing a significant challenge due to an overstock of vehicles. The script mentions that car dealers across India are struggling with a backlog of cars, which is a central issue in the video's narrative.

💡Stock Overload

Stock overload refers to a situation where there is an excessive amount of inventory that is not being sold or is taking too long to sell. The video discusses how car dealers in India have a stockpile of nearly 8 lakh cars, which is a substantial figure that signifies a major problem in the automobile industry.

💡Federation of Automobile Dealers Associations (FADA)

FADA is a prominent organization representing automobile dealers in India. The script cites FADA's statement about the drastic increase in the inventory of passenger cars across the country, highlighting its role as a key source of information regarding the current state of the car market.

💡Passenger Cars

Passenger cars are vehicles designed to transport people rather than goods. The video's focus is on the sales and inventory of passenger cars, which are the primary concern for car dealers as indicated by the discussion on the backlog of nearly 8 lakh cars.

💡Inventory

Inventory refers to the stock of goods held by a business. In the video, the term is used to describe the unsold cars that car dealers have on hand, which has become a pressing issue due to the high volume of unsold vehicles.

💡Sales Decline

A sales decline is a reduction in the number of units sold over a period. The script indicates a significant drop in car sales, with a year-on-year decrease in July, which is a critical aspect of the video's discussion on the state of the automobile market.

💡COVID-19 Pandemic

The COVID-19 pandemic has had widespread economic impacts, including on the automobile industry. The video suggests that the pandemic's aftermath is one of the factors contributing to the current slump in car sales, as it disrupted supply chains and consumer behavior.

💡Production Cut

A production cut is a reduction in the manufacturing output of a company. The video mentions that car manufacturers may reduce production in response to the high inventory levels, which is a strategic move to align supply with demand.

💡Discounts and Offers

Discounts and offers are incentives provided by sellers to attract buyers. The script discusses how car manufacturers and dealers are offering significant discounts to clear their inventory, which is a common strategy in times of low sales.

💡Electric Vehicles (EVs)

Electric vehicles are vehicles that run on electricity instead of fossil fuels. The video touches upon the challenges faced by electric vehicle sales, indicating a shift in consumer preferences and the impact on the overall car market.

💡Climate Change

Climate change refers to long-term shifts in temperatures and weather patterns. The video suggests that extreme weather conditions, possibly exacerbated by climate change, have affected car sales, as they can disrupt both production and consumer purchasing patterns.

Highlights

Car dealers are facing a major issue with an oversupply of cars.

Federation of Automobile Dealers Association (FADA) reports a significant increase in passenger car stock across India.

Around 8 lakh cars are stockpiled across the country, valued at approximately ₹77,000 crore.

Dealers have an inventory of 70 to 75 days' worth of stock, which is about 2.5 months of supply.

This is the first time since the pandemic that car sales have seen such a steep decline.

FADA President, Manish Raj Singhania, notes that despite the festive season, the market remains under pressure.

Society of Indian Automobile Manufacturers (SIAM) estimates a lower stock count of around 4 lakh cars.

Car sales in July saw an annual decline of 10% with only 3.41 lakh passenger vehicles sold.

A major reason for the sales drop is the release of many new car models, reducing demand for older ones.

Popular car models are seeing decreased demand, including electric vehicles like those from Tata Motors.

Climate change and extreme weather, including heavy rains in regions like Kerala and Telangana, have also impacted car sales.

Heavy discounts are being offered by manufacturers to clear out stock, including on previously high-demand models like Harrier and Safari.

Consumers are delaying purchases in the hope of further price drops or larger discounts.

Maruti Suzuki has even halted the production of certain entry-level cars due to declining demand.

Car manufacturers have responded to the crisis by reducing production and offering aggressive discounts.