Festive Season Expected To Ring In Cheer For Auto Sector

"There will also be a base effect. In the last two seasons the base growth was slow; so this year there are expectations of robust growth."

Gianani's views were corroborated by Vishnu Mathur, director general, Society of Indian Automobile Manufacturers (SIAM).

"The companies are hopeful for this festive season and think that this season will be positive as we have already seen a slow turnaround happening," Mathur told IANS.

Sales of domestic passenger cars rose 15-16 percent in August, marking the fourth consecutive month of growth in nearly two years of deceleration.

SIAM's monthly data had shown that 153,758 units were sold in August, up from 133,513 units in the corresponding month last year.

On the overall spending trend, the index score improved to 45.2 in September, as compared to 43.6 in the previous month.

"The spending sentiment index assesses willingness to make big-ticket purchases such as homes, home appliances, four- and two-wheelers in the next six months...with improvements in every product category surveyed," the report added.

The euphoria comes despite the central bank's decision to keep key interest rates unchanged in a bid to maintain financial and price stability.

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