India’s July passenger car sales show divergence between manufacturers and dealers

Passenger car sales in India in July this year reveal a discrepancy in data from manufacturers and retailers, figures revealed by representative associations on Friday August 5 showed.

According to data released by the Federation of Automobile Dealers Associations (FADA), passenger car sales in July this year were recorded at 250,000 units, down 5% year-on-year.

FADA data is based on passenger car registrations, which actually show the number of units sold at all outlets.

However, data released by the Society of Indian Automobile Manufacturers (SIAM) representing passenger car manufacturers showed sales of 340,000 units in July, a 16% year-on-year increase.

SIAM data is based on the number of units shipped from automaker factories to dealerships.

Some of the industry pointed to persistent claims that passenger car makers often push higher volumes of shipments from their factories to dealerships to post sales growth and keep their own inventories down. But dealer sales, which represent actual consumer purchases, remain weak, indicating inventory piling at the end of the retail chain.