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GST Cuts Fuel Auto Boom: November Sales Surge
29 Nov
Summary
- Commercial vehicle segment expected to post a surprise growth.
- Two-wheeler industry sales show revival, especially at the lower end.
- Tractor sales momentum continues, supported by rural liquidity.
Automotive sales maintained strong momentum in November, with GST reductions significantly boosting consumer demand. The commercial vehicle sector is expected to surprise with robust growth, benefiting from improved operating economics and increased fleet utilization. Key players like Maruti Suzuki, Mahindra & Mahindra, Tata Motors, and Eicher Motors are anticipated to report strong numbers.
The two-wheeler segment is witnessing a revival, with GST cuts stimulating demand for lower CC models, a significant boost for companies like Hero MotoCorp. Trends like premiumization and scooterization are also benefiting TVS and Royal Enfield, which have shown substantial sales growth year-over-year. This suggests GST 2.0 is fostering a structural growth story.
Four-wheeler sales, including small cars, are also up, recovering from previous stagnation. Commercial vehicle manufacturers like VECV, Ashok Leyland, and Tata Motors CV are projected to achieve mid to high-teens growth. Tractor sales continue their upward trajectory, driven by enhanced rural liquidity and M&M's optimistic revised industry guidance.
