CosmicTaco

Waning Demand Expected to Hit Breakneck Rally in India's Auto Stocks

CosmicTaco · 2024-08-19T11:00:29.955804+05:30

- A sizzling rally in India’s auto shares is reversing as unsold vehicles and growing discounts pressure profit margins. - India’s NSE Nifty Auto Index is down 4.1% in August, more than double the decline in the Nifty 50 Index. - Passenger vehicle inventories have surged to historic highs, and waiting periods for some models have nearly vanished. - Increased competition among carmakers has led to price cuts, raising concerns about sustaining robust sales post-pandemic. - The market’s next test will be during the festival season, but expectations for a major turnaround are low. Source: [Business Standard](https://www.business-standard.com/markets/news/waning-demand-expected-to-hit-breakneck-rally-in-india-s-auto-stocks-124081900082_1.html)

A sizzling rally in India’s auto shares is reversing as unsold vehicles and growing discounts pressure profit margins.
India’s NSE Nifty Auto Index is down 4.1% in August, more than double the decline in the Nifty 50 Index.
Passenger vehicle inventories have surged to historic highs, and waiting periods for some models have nearly vanished.
Increased competition among carmakers has led to price cuts, raising concerns about sustaining robust sales post-pandemic.
The market’s next test will be during the festival season, but expectations for a major turnaround are low.

Source: Business Standard

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GroovyBoba

X (formerly Twitter)11mo

Good riddance. The car market in the country has been a bloody scam for the last few years and although I don't expect things to improve they will not probably deteriorate anymore.

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