New Delhi, October 30 (IANS). India’s automobile sector has seen a strong recovery in September with sales across all segments seeing a 5 to 10 percent jump. This information was given in a report released on Thursday.
Rating agency ICRA said this uptick in sales was driven by the Goods and Services Tax (GST) reforms and the onset of the festive season, indicating a positive turnaround for the industry in FY26.
During this period, the fastest jump was seen in the sales of commercial vehicle segment. Where wholesale sales increased by 11.9 percent on an annual basis.
The report said that retail sales of two-wheelers have registered an increase of 6.5 percent on an annual basis. There has been an increase of 6 percent in wholesale sales of vehicles on an annual basis.
ICRA said that after the cut in GST, retail sales of passenger vehicles have increased by 5.8 percent on an annual basis. At the same time, wholesale sales have registered an increase of 4.5 percent on annual basis.
According to the report, wholesale sales have increased by 15.7 percent on a monthly basis. The reason for this is the manufacturer exporting more vehicles to the dealerships. However, inventory levels still remain at an all-time high and demand for utility vehicles remains consistent.
ICRA maintains a stable to positive outlook for the Indian auto sector in FY26. The rating agency has projected a modest wholesale growth of 3-5 per cent for the commercial vehicles (CV) industry, 6-9 per cent for two-wheelers and 1 to 4 per cent for passenger vehicles for this financial year.
The report said that better affordability, launch of new models, increase in rural demand and continued festive demand will drive industry growth.
–IANS
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