Automakers optimistic about festive demand
India's automobile industry is projecting a 10% growth for the current fiscal year, bolstered by strong festive demand and favorable tax policies. Industry leaders credit GST 2.0 and lower interest rates for increasing disposable income and driving first-time vehicle purchases.
Why it matters
The automotive sector is a key indicator of consumer confidence and economic health in India, reflecting the impact of national fiscal reforms.
India’s automobile industry is expected to grow by 10% this fiscal year and is optimistic about the upcoming festive season, with Onam already off to a positive start.
The industry continues to benefit from GST 2.0, with cars in the 18% tax bracket recording 30% growth and those in the 40% bracket growing 21%, Maruti Suzuki’s Partho Banerjee said on the sidelines of the Society of Indian Automobile Manufacturers’ annual convention.
Mr. Banerjee said first-time buyers now account for 54% of customers, reflecting growth across segments.
Citing the Wagon R as an example, he said the model recorded 21,000 registrations, which is a level last seen five to six years ago and underscored the impact of GST 2.0.
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