Vehicle manufactures may not have pushed too many vehicles to their respective dealers in December because of the already existing inventory from November due to poor retail sales as a result of demonetisation. Manufacturers also do not want to increase inventory of car manufactured in 2016 so that dealers don’t have to give steep discounts to sell them in the beginning of 2017. As a result auto sales during the month is expected to remain lukewarm opposed to past years. In order to cut down on the production car makers have extended the days of shut down in their manufacturing capacities in December. Watch What Else Is making News According to RC Bhargava, chairman, Maruti Suzuki, bookings of vehicles for Maruti fell by 20 per cent y-o-y in November after the announcement of the demonetisation and it picked up by 7 per cent y-o-y in December. “Maruti has a policy of minimising dealer stocks at the end of the year,”added Bhargava. Hyundai is left with only 40,000 units to be distributed among its dealers. According to a senior executive Hyundai has manufactured 5 lakh units for the domestic market this year, and though the bookings have come down, Hyundai will try to finish the stock with the existing dealerships by giving higher discounts.
