Home / News / India /  October auto sales up 7% on healthy demand: Report

NEW DELHI: Domestic automobile sales volumes grew 7% on a year-on-year (YoY) in October, driven by healthy demand, new model launches and easing of semiconductor chip, as well as increasing private and public infrastructure spending, CareEdge Research said in a report on Tuesday.

However, sales volume declined 7.1% sequentially due to the high base of September, it said.

According to data from credit rating agency, the passenger vehicle (PV) segment has shown the highest growth, followed by commercial vehicles (CV). This was led by increasing demand for utility vehicles in the PV segment and commercial vehicles which benefitted from increased government spending on infrastructure projects.

Analysts at CareEdge Research estimate that the domestic automobile industry sales volume to grow in the range of 17-19% in FY23. The overall sentiment will also continue to show headwinds, especially in the two-wheeler (2W) rural and tractor segments as farmers will start receiving their crop realizations.

“The PV segment will continue to grow with an increasing preference for premium vehicles. The CV segment is anticipated to see continued demand due to structural upcycle as well as increasing government spending on infrastructure projects going forward," the report said.

CareEdge Research said that the exports in October 2022 declined by 19.3% and 3.3% on a y-o-y and m-o-m basis, respectively.

“The exports are expected to decline by 22-25% in FY23 on account of geopolitical tensions, globally high inflation and interest rate environment, and high energy prices in key markets of the US and Europe. Also, with the announcement of job cuts, sentiments might dampen further in the key export destinations," it said.

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less

Recommended For You

Trending Stocks

×
Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout