Car Sales Down 2-3% Amid High Inventory and Low Demand

In August, domestic car sales in India fell by 2-3% year-on-year, with about 355,000 units sold. The decline is attributed to low demand and high unsold inventories at dealerships, prompting manufacturers to reduce production. Maruti Suzuki, India’s largest carmaker, saw an 8.4% drop in sales, while Hyundai recorded an 8% decline. With dealers holding stock sufficient for over two months, the industry faces pressure ahead of the festive season.