MUMBAI: The market expects automobile sales to have recovered further in September.
In the run-up to the festival season, original equipment manufacturers are restocking inventory at the dealers’ end. Channel checks show that among vehicle categories, inventory build-up is relatively better for two wheelers, passenger vehicles, and tractors. On the other hand, commercial vehicles and three-wheelers are likely to remain the laggards.
“Our interaction with leading industry channel partners indicates two-wheeler inventory has reached 30–45 days on the expectation that sales momentum would continue into the festive season and passenger vehicles inventory would sustain at a comfortable level of 20–30 days. Inquiries were encouraging and better than last year,” Motilal Oswal Securities Ltd said in a report on 30 September.
The broking house expects wholesales in September to grow on a year-on-year basis for all segments barring medium and heavy commercial vehicles (M&HCV). It said, low starting inventory, a low