Car Wholesales Drop in India

Factory sales of new cars to dealers slipped by 1,000 units to 238,700 vehicles in December, the Society of Indian Automobile Manufacturers reports.

SIAM blames slower-than-expected retail sales during India’s festival season, which left dealers with bulging inventories. The trade group says those stockpiles have now been returned to normal levels, thanks to factory-sponsored sales incentives last month.

Still, SIAM concedes the market is unlikely to reach the 7%-8% growth rate previously forecast for the fiscal year ending March 31. Sales through the first three quarters of the period advanced only 4% to 2.53 million units, according to the group.