Indian Vehicle Sales Set to Keep Growing, Says SIAM Head

what happened

According to Moody's, citing an interview with ET, vehicle sales in India are expected to keep rising in the second half of the fiscal year, although growth will slow against a high base from last year. SIAM president Shenu Agarwal said sales across all categories rose 20% year on year in the six months to September 30.

Agarwal named more affordable prices after the GST 2.0 reforms, solid financing, resilient rural and urban markets and festive season demand as the main drivers. Passenger vehicle sales of alternative fuel and electric models jumped 31% in July-September. Exports stayed strong overall, although passenger vehicle exports fell 5.2% to 229,000 units due to a high base and logistics strain linked to the West Asia crisis.

Agarwal flagged inflation pressure, higher interest rates and rising input costs as risks. The industry remains cautiously optimistic and expects growth to stay positive.

why it matters

For markets, this points to steady demand in one of the world's largest auto industries. Higher sales and exports support manufacturers and suppliers' revenue, while interest rates and input costs remain the key factors for their profits.

market impact

Indian auto sector: strong sales and exports support the industry

• ▲Indian auto sector pressure up — rising sales and exports support manufacturers' revenue

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