Festive Season Expected To Ring In Cheer For Auto Sector

MUMBAI: After two years of dampened sales during the festive season, India's automobile sector is hoping for the best this time around as there are positive sentiments on the economy and consumer interest grows.

"Overall, the lead indicators are good. The signal for this year's festive season is positive. Our research shows that the auto sector, especially the two-wheeler segment, will show positive sales results this season," ZyFin Advisors chief executive Davendra Nevgi told IANS.

"The auto sector is one of the first to benefit from the growing economy and disposable incomes. This time around there is also a positive mood around the festive season."

Nevgi is backed by ZyFin's vehicle purchase sentiment index, which has registered a steady uptrend since bottoming out in April.

In September, the index increased by 2.5 points to 17.5, with moderate upticks in consumer willingness to purchase both two- and four-wheelers.

"This signifies that a larger number of Indian consumers are planning to purchase two- or four-wheelers within the next six months. With the festive season coinciding with the uptrend in sentiment, auto sales are expected to be better this season, as compared to 2012 or 2013," the ZyFin report said.

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