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As per our channel checks and analysis of wholesale versus retail data of vehicles sold in April-July 2023, inventory levels for passenger vehicles have increased versus commercial vehicles/two-wheelers managing it far better.
Cumulative inventory addition for key PV players like Maruti Suzuki India Ltd./Mahindra and Mahindra Ltd. in April-July-23 is now at 84% of July 2023 retails, implying limited scope for further inventory addition in August-September 2023.
Our channel checks indicate inventory days have increased from ~30 in June-23 to ~40 currently for large Maruti Suzuki dealers and, with festive season being from October this year, we do not expect further stocking till Sep-23.
Two-wheeler players have managed inventory much better, especially Hero MotoCorp Ltd. and TVS Motor Company Ltd., with Hero MotoCorp actually reducing inventory in this period.
Medium and heavy commercial vehicle leaders Tata Motors Ltd./Ashok Leyland Ltd. also reduced inventory in this period, keeping retails largely flat YoY.
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