The report said that auto companies, which are struggling to increase sales amid high interest rates, have an average inventory of more than two months at the dealers' end which could translate into a total stock worth Rs 3,000 crore.
The Business Standard report cited Federation of Automobile Dealers Associations (Fada) as saying that this average inventory last year stood at around Rs 1,800 crore and for dealers, it was around 3-4 weeks.
The data released by Society of Automobile Manufacturers (Siam) had recently suggested that passenger vehicle sales posted straight ninth monthly declined in July. For the Apr-Aug 2013 period, passenger vehicle sales were down 5.3 per cent.
Dion Global Solutions Ltd.