The Indian auto retail industry is forecasted to see positive growth in the first quarter of this fiscal year, driven by factors such as the ongoing marriage season in the northern region, the rabi harvest, and the continued benefits of GST 2.0. The Federation of Automobile Dealers Associations (FADA) stated that the retail outlook for April–June remains cautiously optimistic, with nearly half of dealers expecting growth.
Looking ahead to the full fiscal year, a significant percentage of dealers express confidence in growth, particularly in the 3–7 percent range. This indicates a belief among dealers that the current uncertainties are temporary, with the long-term demand in India remaining strong. Various factors will influence demand in the coming months, including the marriage season, new vehicle launches, and the impact of GST 2.0 on affordability.
While positive factors like the rabi harvest and favorable weather conditions are expected to support demand, concerns persist regarding economic slowdown, supply disruptions due to global conflicts, and the increasing interest in electric and CNG vehicles. Despite these risks, the industry anticipates moderate yet healthy growth in the first quarter of FY27, following a period of adjustment in the previous fiscal year.
