Unfair Gaps🇮🇳 India

Retail Motor Vehicles Business Guide

10Documented Cases
Evidence-Backed

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All 10 Documented Cases

इन्वेंटरी होल्डिंग लागत

₹52,000 crore in unsold inventory value; 52-53 days holding incurring financing, insurance, and storage costs beyond healthy 30-35 days benchmark.

High inventory levels of 52-53 days result in massive carrying costs including interest, insurance, and storage for unsold vehicles worth ₹52,000 crore, eroding dealer margins amid mismatch between wholesale dispatches and retail sales.

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स्टॉकयार्ड क्षमता हानि

4.4 lakh units unsold (34-53 days); lost sales and capacity from occupied space equivalent to operational inefficiencies costing margins.

Excess unsold vehicles (4.4 lakh units in May 2025) occupy dealership stockyards, leading to operational inefficiencies, pre-delivery inspection delays, and reduced capacity for new incoming stock.

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मूल्य निर्धारण त्रुटि हानि

Margin erosion from thin margins on aged stock; industry est. 2-5% revenue loss due to suboptimal pricing and holding beyond 30 days.

Poor pricing optimization exacerbates inventory aging, causing daily depreciation, reduced sale prices, and overall revenue leakage from holding high-value stock too long.

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मैनुअल वारंटी प्रोसेसिंग से लागत वृद्धि

20-30% increase in administrative costs per claim (industry standard pre-automation)

Manual processes lead to higher operational costs from errors, delays, and paperwork in warranty handling.

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