India's Auto Market Accelerates: October Sees a 32% Surge

India's auto industry recorded a 32% year-on-year growth in October, with two-wheelers leading the rise, driven by festive demand and rural consumption. While passenger and commercial vehicles saw gains, high inventory levels pose challenges. The sector remains optimistic yet cautious about future sales amidst economic uncertainties.

India's automotive sector experienced remarkable growth in October, recording a 32% year-on-year increase, according to the Federation of Automobile Dealers Associations (FADA). The two-wheeler segment spearheaded this surge, buoyed by festive demand and strong rural consumption.

The sector reported that overall vehicle sales benefited immensely from major festivals like Navratri and Diwali, which spurred consumer demand. New model launches, attractive festive offers, and enhanced stock availability further bolstered two-wheeler sales, which saw a 36% rise.

The passenger vehicle sector also thrived, citing a 32% growth, fuelled by festive demand and aggressive discounts, specifically in the SUV segment. However, high dealer inventory levels are causing concern, prompting potential discounts to manage stock. Despite these challenges, the industry remains optimistic, though wary of inventory and economic pressures as the year progresses.

(With inputs from agencies.)