Forced to buy low-demand car models: Dealers' body

AUTOMAKERS ARE REPORTEDLY forcing dealers into buying models that have relatively lower demand pull, leading to a rise in stock levels.

- SWARAJ BAGGONKAR

This comes at a time when the slowdown in retail demand continues to hurt the industry.

This mismatch in supply and demand led to an increase in stock with the dealers by 2-55 days in June compared to May, said CS Vigneshwar, president, Federation of Automobile Dealers Associations (FADA), the apex lobby body of automotive dealers in the country.

"The OEMs (original equipment manufacturers) force dealers to pick up vehicles that are not in demand. The dealers don't want such vehicles and neither does the customer. Then these are sold at a discount," Vigneshwar added.