Auto sales contract in November as firms enforce inventory control

Sales higher than previous year, but lower than October

Auto sales, a key barometer for economic growth, contracted after three months of robust growth as automakers trimmed production to reduce inventory pile up at dealerships.

Despite record wholesale numbers in October, dealers had warned vehicle manufacturers, and especially two-wheeler manufacturers, to curb production in November due to high inventory in the system, saying that retail sales hadn’t recovered, leading to pile up of inventory. 

“We once again caution both OEMs (original equipment manufacturers) and dealers to keep a check on vehicle inventory as post-festival demand may remain subdued. Since inventory levels are at their highest during this financial year, it may