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India's auto sector experienced solid growth in September, driven by recent GST cuts and festive season demand. Total retail sales rose 5.2% year-on-year, with two-wheelers up 6.5% and passenger vehicles up 5.8%. While early September saw muted sales, demand surged after revised tax rates were implemented. The Navratri festival contributed significantly, with dealers reporting a 34% jump in sales, as new buyers entered the market and existing customers upgraded vehicles. With favorable monsoon conditions, a strong harvest, and steady lending rates, the sector is expected to see further growth, especially during Diwali when high-value purchases are common.
India's retail auto market saw a noticeable growth in September, with overall sales increasing by 5.2% compared to the same period last year, according to the Federation of Automobile Dealers Associations (FADA). Both two-wheelers and passenger vehicles contributed to the growth, supported by recent tax reductions and festive season incentives. Advertisement
Sales were relatively slow during the first three weeks of the month but picked up sharply after September 22, when revised goods and services tax rates came into effect. Two-wheeler sales rose by 6.5% year-on-year, while passenger vehicle sales increased by 5.8%.
Dealers recorded record sales during the nine-day Navratri festival, with a 34% year-on-year jump. The festive season attracted many first-time buyers to showrooms, while existing customers also upgraded their vehicles to take advantage of lower taxes and promotional schemes.
FADA highlighted that an above-average monsoon, a strong harvest season, and stable lending rates are expected to enhance consumer purchasing power, further supporting demand. Looking ahead, the association anticipates peak sales during the upcoming Diwali festival in October, a period when high-value purchases traditionally rise.
Source Reuters
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