MUMBAI -- A rapid change in customer preference is causing uncomfortably high inventory levels at auto dealerships across India, adding pressure to their business despite robust sales during the country's festive season. Indian consumers have been opting to finance larger and swankier vehicles with debt, driving sales of traditionally popular small cars down.
The passenger car inventory at dealerships -- which is measured in days -- remains high, with 75 to 80 days of product in October, which is sharply above the recommended level of 21 days, the country's largest auto dealers' association said last week. For comparison, the metric was as high as 85 days in September.
