Automotive sector reflects positive trend

The implementation of GST notwithstanding, auto sales were up in July 2017 with most of the dealers having started increasing their inventory ahead of the festive season. 

In fact, the GST has been taken in the positive spirit by the industry.
 
There are several macro factors that have also aided in terms of boosting the demand for vehicles such as the above normal rainfall this year, the upside demand from the rural part of the country, expectations of interest rate cut, etc.
 
Most of the automotive players in the industry have declared their July month’s sales on a positive front. Smoothened GST implementation may also have acted as a positive trigger for the sector’s upside sales data for July 2017.
 
Meanwhile, the impact of the implementation of BS-IV has also settled. The automotive industry is experiencing transformation of fuel vehicles to electric ones. 

The Government of India’s initiative in this direction has also provided a boost to the sector. Under the National Electric Mobility Mission Plan 2020, the government has set an ambitious target to achieve 60-70 lakh sales of hybrid and electric vehicles by 2020.