COVID-19 impact: Vehicle inventory piles up due to muted demand

Mini

June will be an important month for the auto industry to clear up all the existing inventories in the system. CNBC-TV18 has learnt that nearly 5.5 lakh vehicles registrations took place in May and wholesale dispatches were fewer than the retail sales.

June will be an important month for the auto industry to clear up all the existing inventories in the system.
CNBC-TV18 has learnt that nearly 5.5 lakh vehicles registrations took place in May and wholesale dispatches were fewer than the retail sales.
Companies like TVS Motor Company said on record that they have deliberately dispatched fewer vehicles to automobile dealers in May considering the burden on them already, the demand has been muted and there is a lockdown situation in different parts of the country.
According to sources, the passenger vehicle (PV) inventory is currently in the range of 10-15 days, two-wheeler inventory is in the range of 25-30 days, commercial vehicle (CV) inventory would be in the range of 35-40 days and this inventory has been piling up since March.
The Society of Indian Automobile Manufacturers (SIAM) has written to 18 state governments asking them to allow online registration of vehicles. Because the suspension of registration process is hampering the sale of automobiles during this lockdown period.
Watch the accompanying video of CNBC-TV18’s Parikshit Luthra for more details.

Market Movers

CompanyPriceChange%Gain
Bajaj Finance6,086.40 411.90 7.26
Bajaj Finserv11,993.10 434.25 3.76
SBI432.25 10.80 2.56
Divis Labs4,372.55 105.10 2.46
IndusInd Bank1,024.35 20.80 2.07
CompanyPriceChange%Gain
Bajaj Finance6,087.60 413.45 7.29
Bajaj Finserv11,991.60 432.95 3.75
SBI432.25 10.80 2.56
IndusInd Bank1,023.65 20.25 2.02
Dr Reddys Labs5,290.65 68.80 1.32
CompanyPriceChange%Loss
ITC209.30 -3.20 -1.51
Bajaj Auto4,179.90 -44.60 -1.06
Eicher Motors2,705.05 -24.00 -0.88
UPL838.70 -6.85 -0.81
Adani Ports846.75 -5.85 -0.69
CompanyPriceChange%Loss
Bajaj Auto4,179.95 -42.35 -1.00
Maruti Suzuki7,199.15 -40.85 -0.56
HCL Tech968.50 -3.35 -0.34
UltraTechCement6,706.00 -18.70 -0.28
Power Grid Corp241.55 -0.45 -0.19

Currency

CompanyPriceChng%Chng
Dollar-Rupee73.05250.07750.11
Euro-Rupee88.94100.06600.07
Pound-Rupee103.40700.37400.36
Rupee-100 Yen0.66670.00110.17