Auto companies align dispatches with retail demand amid stock pileup

Passenger vehicle dispatches rise just 0.5% in H1 2025 as OEMs curb factory output to align with slower retail demand and elevated dealer stock levels

Manufacturers of passenger vehicles (PVs) in the first half of the calendar year (2025) reported a modest 0.5 per cent year-on-year increase in wholesale dispatches, while retail sales grew 2.5 per cent for the same period, reflecting a calibrated approach by automakers amid elevated dealership inventories and cautious consumer sentiment. 

 

According to the Society of Indian Automobile Manufacturers (Siam), dispatches rose marginally to 2,164,785 units, up from 2,152,828 units a year earlier.

 

Retail sales, meanwhile, grew at a stronger pace of 2.5 per cent during the same period, reaching 2,069,796 units, according to the data from the Federation of Automobile