New Delhi, April 2 -- Car dealers are offering discounts, usually available during festivals like Diwali, to clear inventory that has piled up from about a fortnight at the start of the year to up to 55 days in March as demand slows, according to industry executives and brokerages.

"Retail sentiment in the automotive sector has evidently turned negative, marked by double-digit drop-in walk-ins and inquiries," Amit Hiranandani of PhillipCapital wrote in a 30 March note. "Inventory levels have risen, and discounts are approaching those seen during the Diwali season in an effort to clear stock. Additionally, the duration from inquiry to conversion has lengthened."

While the inventory levels are close to about 50-55 days seen a year earlier...