Festive Season Gives Hope to Flattish Indian Auto Industry Growth

The Indian automobile industry expects a 3-5% growth in domestic passenger vehicle wholesales this fiscal. After a stagnant first half, festive seasons and strong sales in October signal optimism. Despite challenges like high base effects and previous fluctuations, the industry remains cautiously hopeful.

The Indian automobile industry anticipates a modest growth of 3-5% in domestic passenger vehicle wholesales this fiscal year, following a largely stagnant first half, as reported by the Society of Indian Automobile Manufacturers (SIAM).

Initially, SIAM projected a 5-8% sales growth at the fiscal start; however, April to September PV sales only climbed marginally to 20,81,143 units from 20,70,960 the previous year.

SIAM President Shailesh Chandra expressed optimism, noting a 25% retail sales surge in early October. Despite earlier surprises and high base effects, the festive period and infrastructure investments are expected to boost demand.

(With inputs from agencies.)