FADA Raises Alarm on Rising Inventory Levels Amid 2024 Finance Summit

The Federation of Automobile Dealers' Association (FADA) has expressed concern over the high inventory levels in dealerships and intends to address the issue with the Society of Indian Automobile Manufacturers (SIAM). During the 2024 Finance and Insurance Summit, FADA President Manish Singhania also highlighted the importance of infrastructure development and continuity in the FAME-3 policy.


PTI | Mumbai | Updated: 14-06-2024 22:12 IST | Created: 14-06-2024 22:12 IST
FADA Raises Alarm on Rising Inventory Levels Amid 2024 Finance Summit
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The Federation of Automobile Dealers' Association (FADA) has raised alarms over burgeoning inventory levels and plans to discuss the issue with the Society of Indian Automobile Manufacturers (SIAM). During the Finance and Insurance Summit 2024, FADA President Manish Singhania stressed the need for ongoing infrastructure initiatives and continuity of the FAME-3 policy.

Singhania mentioned that 2018-19 was particularly challenging for automobile dealers due to high inventory levels, leading to the closure of 280 dealerships. FADA is keen to avoid a recurrence of such a scenario.

He emphasized that inventory levels beyond 30 days adversely impact dealerships, causing concern. The timeline for dealers to repay bank funds has been extended from 60 to 90 days, allowing OEMs to increase stock levels. This situation has prompted FADA to caution against overstocking.

Singhania stated that last year's inventory levels peaked at 65 days, causing significant concern. Despite collaboration with SIAM to reduce this, the current high levels are troubling. FADA intends to approach SIAM again if the situation exacerbates in June.

In discussing budget expectations from the new government, Singhania called for continued infrastructure development, reduced GST rates for entry-level passenger cars and two-wheelers, and sustained support for electric vehicles through the FAME-3 policy.

He also urged finance and insurance companies to provide more support, including training for dealership finance and insurance personnel to boost dealership success.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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