Reported about 2 months ago
A strong rally in India's auto shares faces a downturn due to rising unsold vehicle inventories and increased discounts, impacting profit margins. The NSE Nifty Auto Index has dropped 4.1% in August, significantly underperforming the broader market. Maruti Suzuki's shares have fallen 6%, marking a potential worst monthly performance since December 2022. This cooling demand has prompted some manufacturers to offer incentives, raising concerns about sustainable sales in a highly competitive environment. Analysts suggest a cautious outlook for the upcoming festive season, questioning whether sales can rebound significantly.
Source: YAHOO