Synopsis:
CLSA reported that through the first 16 days of the festive season, passenger automobile volumes rose 25% YoY, two-wheelers 21%, whereas industrial automobiles, tractors, and three-wheelers recorded modest 5–7% development.
India’s auto sector is witnessing sturdy festive season momentum, pushed by bettering client sentiment, GST cuts, and pent-up demand, resulting in sturdy development in passenger and two-wheeler gross sales on the retail stage.
Festive Season Boosts Auto Gross sales
In accordance with brokerage agency CLSA, India’s car sector is witnessing sturdy momentum through the festive season, supported by bettering client sentiment, a GST charge minimize, and pent-up demand. The festive spirit is visibly lifting gross sales throughout classes, resulting in sturdy development on the retail stage.
Pent-up demand refers to a situation the place client demand for items or providers surges unusually excessive after a interval of lowered spending, sometimes occurring following an financial slowdown, recession, or restrictions resembling a lockdown.
Passenger Autos and Two-Wheelers Lead Progress
Through the first 16 days of the continuing festive season, automobile gross sales have proven a pointy uptrend. Passenger automobile volumes rose 25% year-on-year (YoY), reflecting sturdy purchaser curiosity and availability of latest mannequin launches. Equally, two-wheeler gross sales elevated 21% YoY, pushed by rising rural demand and improved affordability.
Average Progress in Business Autos, Tractors, and Three-Wheelers
In distinction, industrial automobiles and tractors recorded modest development of round 5% every, indicating a gentle however cautious restoration within the broader logistics and agricultural segments. Three-wheeler gross sales grew 7%, supported by bettering city mobility and elevated demand for last-mile transport options.
General, CLSA’s evaluation highlights a optimistic outlook for the auto sector, with festive shopping for developments, authorities tax reduction, and bettering client confidence more likely to maintain momentum by way of the remainder of the season.
As of September 2025, GST on automobiles in India has been revised: two-wheelers as much as 350cc and small automobiles (petrol/LPG ≤1200cc, diesel ≤1500cc) are actually taxed at 18%, whereas two-wheelers above 350cc and bigger/luxurious automobiles are taxed at 40%. Electrical automobiles profit from a decrease 5% GST, which stands unchanged, making them extra inexpensive.
Written by Manideep Appana
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