New Delhi [India], September 30 : The automobile sector is expected to record strong year-on-year growth in sales across all segments in September, supported by festive demand and positive customer sentiment, according to a report by Nuvama Research.
The report highlighted that wholesales of tractors, two-wheelers (2Ws), passenger vehicles (PVs) and commercial vehicles (CVs) are likely to show upward momentum in September 2025, led by strong festive sales that began from September 22.
It stated "We expect upward YoY momentum in Sep-25 wholesales across tractors, 2Ws, PVs and CVs led by strong growth in festive sales from 22nd September".
The report added that the customer sentiment has received a significant boost from the recent cuts in the Goods and Services Tax (GST).
In addition, supportive factors such as positive rural demand, adequate finance availability, and inventory build-up with dealers have added to the growth momentum.
Taking into account the GST relief, the launch of new products, the upcoming Pay Commission for government employees, and recent reforms in interest rates and income tax, the brokerage firm said it remains constructive on the outlook for the auto sector.
In terms of segment performance, the passenger vehicle industry volumes are projected to rise in high single digits, with domestic sales estimated to grow around 7 per cent year-on-year in September.
The growth is expected to be driven by the benefits of GST cuts, recovery in entry-level demand, and stocking up of inventory by dealers ahead of the festive season.
Similarly, two-wheeler volumes in the domestic market are expected to grow around 8 per cent YoY. The segment is also likely to benefit from GST cuts and improving entry-level demand.
Furthermore, exports are anticipated to expand in double digits, supported by higher demand from Latin America, Africa, and Asia.
Tractor sales are forecast to register double-digit growth, with domestic volumes expected to increase by nearly 10 per cent on a YoY basis.
GST cuts and a favourable rural sentiment are key drivers, while farmer confidence has also improved with expectations of surplus rainfall during the season.
However, the report noted that terms of trade have slightly turned negative due to rising input costs.
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