India auto dealers struggle with high inventory despite festive season boom

Customer preference, access to financing leaves sellers with overstock of compact vehicles

20241119 Maruti Suzuki

Customers talk at a Maruti Suzuki dealer shop in Mumbai. (Photo by Ken Kobayashi)

SOUMYAJIT SAHA, Nikkei staff writer

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.

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