Automobile Sales Rev Up: Festive Demand and Tax Cuts Drive Growth
Nuvama Research predicts robust sales growth in the automobile sector for September, fueled by festive demand and positive public sentiment. The industry benefits from GST cuts, new product launches, and supportive fiscal policies, with increases expected across tractors, two-wheelers, passenger vehicles, and commercial vehicles.
- Country:
- India
Nuvama Research forecasts a strong year-on-year increase in automobile sales for September, attributing gains to enthusiastic festive demand and favorable customer sentiment. The report suggests significant growth across all vehicle segments, including tractors, two-wheelers, passenger vehicles, and commercial vehicles, beginning around September 22.
Further analysis indicates that the recent Goods and Services Tax (GST) reductions have notably boosted consumer sentiment. The study emphasizes additional growth drivers such as positive rural demand, abundant financing options, and strategic dealer inventory build-up, as well as recent industry reforms.
In the passenger vehicle sector, volumes are projected to climb by high single digits, with domestic sales increasing approximately 7% compared to last year. Similar growth is expected for two-wheelers, with an 8% rise anticipated domestically and double-digit export expansion driven by global demand, particularly from Latin America, Africa, and Asia.
(With inputs from agencies.)
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