India’s car market is in big trouble. Car dealers are sitting on unsold vehicles worth ₹52,000 crore. Yes, you read that right! This is the biggest stockpile ever seen in the country’s automobile history.
Dealers Are Overloaded With Stock
According to reports, dealers normally have stock for 34 to 38 days. That means around 4.4 lakh (440,000) cars. But this time, dealers have more than 52 days of stock. That’s very high, and it’s causing huge money problems for car sellers.
During last year’s Diwali, stock levels were slightly higher in number, but now the value of cars is much bigger due to price hikes.
Slowest Car Sales in 8 Months
In May 2025, only 3,02,214 cars were sold. This is 3.14% less compared to last year. Experts say this is the slowest sales month in the last 8 months.
Even though companies are sending more cars to dealers, people are not buying enough. This has created a huge gap between production and demand.
Dealers Under Pressure
The FADA (Federation of Automobile Dealers Associations) said that dealers are under high financial stress. Earlier, cars would sell in about 21 days, but now they are unsold for more than 50 days.
This means dealers must spend more money to manage and store these cars – and that’s hurting their business.
But Car Companies Say All Is Fine?
Maruti and Hyundai have claimed their stock levels are normal. But insiders say this isn’t the full truth. The slow sales numbers are enough to show that the market demand is weak.
Will the Situation Improve?
Tarun Garg, an expert in the auto sector, said that demand is still low. But he hopes the situation will get better if:
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- The government reduces interest rates
- People get income tax relief
- CRR (Cash Reserve Ratio) is cut – this will help dealers by lowering costs
Experts say things might improve in the second half of 2025, if the government takes the right steps.
Disclaimer: All information is based on latest industry data and news sources. Numbers and figures may change. Please refer to official reports for confirmation.
