ICRA Cuts PV Factory Dispatch Outlook Down To 0-2% Due To High Inventory Level

PV Dispatch Outlook by ICRA: Rating agency ICRA on Monday revised downwards outlook for passenger vehicle factory dispatches to showrooms in current fiscal on acccount of high inventory levels.

Despite good retail sales, a year-on-year growth of 6 per cent in April-October FY2025 partially on account of an early festive season, high inventory levels for industry curtailed wholesale volume growth, as per a report on domestic automotive industry by domestic ratings agency.

"ICRA has thus revised outlook for wholesale volume growth for industry in FY2025 downwards to 0-2 per cent," it ded.

rating agency h earlier pegged PV wholesale growth at 3-6 per cent for 2024-25 fiscal.

Retail sales of passenger vehicles during festive season grew at a moderate pace of 6 per cent year-on-year to 6.5 lakh units, aided by attractive discounts and competitive financing rates.

ICRA also revised outlook for wholesale volume growth for industry to 11-14 per cent in FY2025, led by stey replacement demand and an improvement in rural demand on back of healthy monsoon precipitation.

re was a robust 14 per cent growth in two-wheeler retail sales during festive season, aided by festive cheer and an improvement in rural demand, it said. Dealers reported a significant increase in footfalls and bookings; as per channel check, enquiries and sales conversions were strong, particularly in semi-urban and rural areas and inventory levels were at near normal levels, it ded.

recently concluded festive season, from October 3, 2024, to November 13, 2024, brought cheer to automotive industry, with robust retail across most segments (barring commercial vehicles), representing moderate-to-healthy growth on a year-on-year basis.

sentiments since onset of festive period (during Navratri) were strong and demand was boosted furr with a healthy pick-up during Diwali, ICRA noted.