A slow start to the festive season, higher upfront insurance costs and fuel prices are likely to slow down auto sales in October, according to a BloombergQuint poll of analysts.
“Our dealer checks indicate that the start to the festive season has been slow, especially for passenger vehicles and two-wheelers, as sentiment has been affected due to higher fuel prices, interest rates and insurance costs,” said Nomura Auto Analyst Kapil Singh in his monthly estimate note.
The Japanese brokerage expects the sales of passenger vehicles and two-wheelers sales to grow by 4 percent and 11 percent, respectively, in October.
Motilal Oswal, too, expects a slow start to auto sales and said that southern markets like Kerala are witnessing a gradual recovery after the floods which will add numbers to the monthly auto sales. “Dealer checks indicates only a marginal improvement in demand momentum, leading to high inventory levels,” said Jinesh Gandhi, research analyst at the brokerage.
