• Auto demand outlook: Demand levels remained strong across all categories in Q2 with healthy channel inventory, and elevated demand is expected to continue through the festive season supported by stable interest rates, GDP growth, and persistent post-GST price benefits.
• Electric vehicle adoption: EV growth is expanding across all segments, with three-wheeler penetration surpassing 50%; while car demand currently outpaces charging infrastructure, 400–500 km vehicle ranges and industry-government collaboration with charging operators are mitigating range anxiety.
• Export market opportunities: Regulatory harmonization in safety and emission norms has opened developed markets to Indian automakers, with Indian-manufactured cars already accounting for nearly 50% of sales in South Africa alongside rising demand for cost-effective EVs.
• Commodity cost pressures: After higher-than-expected commodity price increases in Q1 and Q2, input cost pressures are anticipated to moderate starting in Q3 as manufacturers deploy internal cost-reduction measures.