Toyota Kirloskar Motor (TKM) said that it was correcting inventory levels to liquidate stocks by December and make a smooth transition to BS VI.
Having registered double-digit growth in November 2019 as against the same month last year, the company had been doing pipeline correction to liquidate stocks by December and working towards smooth transition to BS VI, the company said on Monday.
“In line with our customer first approach, we are readjusting the production plan to be able to match our supply to the increased customer demand. Thanks to our loyal customers, there has been a marked improvement in retail sales (sold to customers) as compared to wholesales (sold to dealers) in November. We hope this pace in retail sales continues to year-end,” said N Raja, deputy managing director, TKM.
“We have consciously lowered the volume of vehicles sold to dealers to ensure lean inventory/avoid high market offers. We are adjusting our production to ensure we do not put any excess burden on our dealerships before the shift to BS VI in April 2020.”
Positive sentiments in the market have continued to November 2019 which have reflected in the spike in customer orders across all models. The boost in orders for all models has sustained this month even after the end of festive season.
Customers are aware of the model year price rise in January and the significant price hike of diesel vehicles by 15-20% after BS VI transition. This pre-buying pull of BS IV vehicles had helped us in pushing retail sales and also enabling successful runout of products before shift to BS VI, he said.
Meanwhile, the company sold a total of 8,312 units (sales to dealers) in the domestic market in November 2019. The company exported 929 units of Etios series, clocking a total sale of 9,241 units, against 10,721 units in the domestic market during the same period last year.