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Auto Retail Demand Remains Strong As FADA Targets Leaner Inventory
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CNBC TV18•06-10-2026, 14:53
Auto Retail Demand Remains Strong As FADA Targets Leaner Inventory
- •Indian automobile retail sales surged 32% year-on-year and 4.7% sequentially in September, with commercial vehicles crossing the 100000-unit mark for the first time in the month.
- •FADA CEO Saharsh Damani noted that underlying demand remains healthy despite the festive calendar shifting Diwali to November.
- •Passenger vehicle inventory is hovering around 43 to 45 days, with the industry aiming to reach a leaner 30-day inventory post-festival.
- •Rural markets continue to outperform urban areas year-on-year, though urban demand is accelerating month-on-month ahead of the festive season.
Key Questions Answered
Indian automobile retail sales surged 32% from last year and 4.7% sequentially in September, with commercial vehicles crossing the 100,000-unit mark for the first time during that month.
The auto industry is targeting a 30-day post-festival inventory level to enter December with a leaner channel, eventually aiming for FADA's preferred level of 21 to 25 days.
On a year-on-year basis, rural markets continue to outperform urban areas, although urban demand is accelerating month-on-month as festivals approach.
