Auto Sector Sees Mixed Trends During Festive Season

A brokerage report reveals mixed trends in the auto sector during Navratras. While two-wheelers and tractors displayed growth, rural sales stayed muted. Passenger vehicles might see a festive dip, with commercial vehicles experiencing demand challenges. Nevertheless, prospects are improving ahead of Diwali.

The Navratras brought a mixed bag of fortunes for the auto sector, as revealed by a brokerage report. Retail sales showed mid-to-high single-digit growth, yet rural sales remained subdued.

The report, released by Motilal Oswal Financial Services, highlighted an upswing in inquiries and bookings for prominent brands like Maruti Suzuki and Tata Motors. While two-wheelers and tractors witnessed positive momentum, passenger and commercial vehicles displayed moderate demand.

Despite challenges, the festive season offers a glimpse of optimism, particularly with a better monsoon boosting rural sentiment. Diwali sales remain critical in assessing inventory clearance, according to the brokerage.

(With inputs from agencies.)