Festive Season Expected To Ring In Cheer For Auto Sector

The index reflects plans to purchase vehicles over the next six months based on a monthly survey of 4,000 consumers in 18 cities across India, representing urban consumers.

The onset of festive season did bring in a marginal sales growth in the auto sector, with manufacturers reporting a slight increase in September.

The industry is suffering from high fuel and interest costs, coupled with a slowdown in the economy and negative sentiment due to lack of industrial and mining activity.

"In this festive season, we are seeing a significant increase in first-time buyers and exchange buyers which is very encouraging as it will accelerate the positive momentum already being experienced in the last few months," Hyundai India senior vice president Rakesh Srivastava had told IANS earlier.

"The demand will emerge out of the fact that the economy is growing. GDP growth for the first quarter was positive with a growth of five percent. The policy environment in terms too is also pushing the economy which will also raise the sales numbers this season," Bharat Gianani, senior equity research analyst-auto and auto ancillary, Angel Broking, told IANS.

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