FADA confident of auto sector clocking up to 12% growth in FY27 on sustained post-GST demand

Indian automotive dealers' body Federation of Automobile Dealers Associations (FADA) is confident of the Indian automobile industry clocking a double-digit growth in FY27. The apex automotive dealers' body believes the sector will record up to 12% growth in the current financial year, with good traction on the ground continuing since the GST rate cuts announced during the festive season last year. The upcoming festive season and continuing positive consumer sentiment will play a key role in this growth trajectory, believes FADA.

In an interaction with PTI, FADA CEO Saharsh Damani said that he believes that rural passenger vehicle demand will continue to outpace urban demand, and all automotive segments will continue to outperform this festival season. He reportedly said that the base for the last six months compared to the same period of last year was very low, and therefore the industry has witnessed extremely good growth coming in during the first six months. "Post 22 September last year, the GST 2.0 rate cut was announced, so we are keeping a close watch on how, post 22nd September this year onwards, the growth will look like, because that will be the actual litmus test for the industry," Damani reportedly said.

Sharing his outlook on the upcoming festive season and second half of the current financial year beginning October, the FADA CEO reportedly said that there is good traction on the ground, which is making the hopes much stronger for the sales performance in the second half of FY27. "For the full financial year ending March 2027, I think we can aim for a double-digit growth, or maybe in a 9-11 or 12% range. So that is the growth number that we are looking out for the full financial year," Damani reportedly said.

The festive season is generally the best season for automobile sales in India, with consumer sentiment high, buoyed by a good monsoon and an upbeat festive mood. Adding more fuel to the expectation of a positive industry performance this year is the sustained effect of the GST rate cuts announced late last year.

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