Dealers said the inventory at their end is higher by 15-20 per cent compared to March end as they continue to lift vehicles from manufacturers to qualify for annual incentives. “There is also a pressure from companies to continue wholesale purchases even though retail demand is on a decline”, said another dealer.
A sales and marketing executive with a leading car maker said that in the backdrop of a widespread sealing drive in Delhi, owning a new car is no longer a priority for many businessmen and traders. “Even in markets like Chandni Chowk where no sealing has happened, the traders are keeping purchases on the hold”, he said.
Since the start of this calendar year, the city’s municipal authorities have sealed illegal establishments in prominent local shopping complexes including Sunder Nagar, South Extension-I, Shankar Road Market, Green Park Market, Rajouri Garden and Hauz Khas.
Even in areas like Chandni Chowk where there is no sealing “June is not looking any better. We expect some revival in July when wedding season begins,” said another automobile dealer in the city. Many businessmen who depended on rental income from the real estate in such markets have also taken a hit. According to estimates from the Confederation of All India Traders (CAIT), at least 600,000 traders in Delhi city could be impacted by the sealing drive which is not yet over.