How did GST cuts impact Indian automobile sales in November?

GST cuts significantly boosted consumer demand, driving sustained sales momentum across various automotive segments in November.

Which automotive segments saw a surprise increase in demand in November?

The commercial vehicles segment is expected to post a surprise growth, driven by GST cuts and improved fleet utilization.

What is the current trend in the Indian two-wheeler market?

GST cuts have revived the lower-end of the two-wheeler market, with premiumization and scooterization also contributing to strong sales.

Home / Business and Economy / GST Cuts Fuel Auto Boom: November Sales Surge

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.

GST Cuts Fuel Auto Boom: November Sales Surge

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.