GST rate cuts lifted auto sales and pushed the Nifty Auto index higher, but listed car dealers have failed to benefit. A dispute over compensation cess refunds has hurt margins, weighed on profits and kept investors on the sidelines.
4 min read24 Dec 2025Most automakers sell their vehicles through dealerships that are managed by third parties. Companies dispatch their vehicles directly to dealers who then sell them to customers. Any cut in production will end up impacting the dealers, which can increase wait time for customers.
3 min read7 Jul 2025The dealers' association attributed the decline in sales to weak consumer sentiment and raised concerns about rising inventory, claiming that automakers pushed products without the consent of the dealers.
2 min read6 Mar 2025There are no restrictions on the value of the vehicle being scrapped and the new one being purchased, giving rise to an arbitrage opportunity - a scrapped old budget car can be used to get discounts on a swanky new luxury car.
4 min read19 Feb 2025Auto stocks declined on October 29, with the Nifty Auto index falling 2.70% to 23,300 amid concerns of weak Diwali sales due to rising living costs and inflation, affecting consumer spending and inventory levels.
2 min read29 Oct 2024While H2 could bring stronger growth, the full-year numbers are unlikely to hit the initial 5-8% target, with growth now expected to settle at less than 5%.
3 min read14 Oct 2024Most automakers sell their vehicles through dealerships that are managed by third parties. Companies dispatch their vehicles directly to dealers who then sell them to customers. Any cut in production will end up impacting the dealers, which can increase wait time for customers.
3 min read7 Jul 2025There are no restrictions on the value of the vehicle being scrapped and the new one being purchased, giving rise to an arbitrage opportunity - a scrapped old budget car can be used to get discounts on a swanky new luxury car.
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