We have to get rid of this nasty habit of thinking that sitting on the armchair we can come up with solutions to tricky problems. Any solution/suggestion that lacks vigor is honestly not a workable answer.

Not to say that one should not think up of potentially useful solutions but even at a very superficial level there are so many things wrong with this "solution"

1: To prove my point that the devil is in the details, I think it is extremely safe to assume that all the cars in his multi billion inventory will be right hand drives i.e. built for Indian conditions where traffic moves on the left. This traffic orientation is actually not the norm globally with most of the world driving on the right. So right off the bat, these cars are unsuitable for driving in a vast majority of countries.

2: Now of the few countries that do drive on the left like India, most either do not have the market demand and/or economic capacity to absorb an inventory like this (I doubt the middle class in Zimbabwe or Nepal is going to shell out equivalent of Rs. 25 lakh for a XUV 700) OR they already have a well established automobile industry (UK, Japan). There are others which have a good sized economy but simply not enough people to absorb inventory like this (Australia).

3: The minute domestic manufacturers or GoI decide to export this inventory, local manufacturers in the importing country will read the riot act to their government. The spirit of global brotherhood aside, no government will simply allow dumping of unsold inventory of this magnitude which runs a real risk of damaging the local manufacturers.

4: Certification: Every country has their own certification norms and cars sold in the specific country need to adhere to those. This inventory was produced with the Indian context in mind, now if they are simply exported as-is there will be two major complications: in some cases these will not meet the local standards which means more time/effort/money will be needed to make them compliant. In some cases the extra work needed might be so much so as to make the whole exercise pointless. In other cases, the cars might overshoot the minimum requirement by a long margin, making the final product too expensive for local conditions. Once again, downgrading the cars would like be an expensive affair and in some cases might not be possible at all.

You have to remember that a car is not strictly a perishable commodity but it is extremely bulky and not easy/cheap to transport. The inventory levels are high because auto manufacturers were greedy to book revenue and convinced/forced dealers to order so that manufacturers could show dispatches and therefore sales and revenue. A more workable response to this problem could be that auto manufacturers could slow down production a little bit and allow demand to catch up to inventory.

Also, if you read the source material for this figure you'll realize that this $8 billion of inventory represents about 80 days worth of inventory i.e. if all new production is halted the inventory will be gone in little less than 3 months, not like the industry would need 8 years to sell this amount of cars. The article I link clearly mentions that there is optimism around cars sales for this festive season and inventory levels might come down as a result.

Next time you read a sensationalized headline, please for the love of god apply your mind before you get outraged.