Autobayng News Team
The ongoing wedding season and attractive exchange offers are expected to provide a temporary boost to sales across entry-level vehicle segments.“>
Electric passenger vehicle volumes are regaining momentum after an initial slowdown caused by the government’s reduction in GST on internal combustion engine (ICE) vehicles, according to a report by YES Securities.
The brokerage noted that festive demand for electric cars has remained strong, with retail sales growing by about 15–20 per cent year-on-year.
“Electric passenger vehicle volumes are back in action post the initial knee-jerk reaction to reduced GST on ICE vehicles,” the report stated, adding that original equipment manufacturers (OEMs) are offering attractive schemes on ageing inventories — particularly vehicles in stock for over 90 days — to sustain sales.
In addition, a loyalty discount of ₹50,000 is being offered to existing brand customers to further drive volumes. Inventory levels for electric vehicles remain under control as most dealers continue to prioritise ICE vehicles amid the evolving demand environment.
Key trends
A key aspect highlighted in the report is the rise in first-time car buyers, whose share has increased by 4–5 per cent across regions. Analysts view this as a healthy indicator of recovery in the broader passenger vehicle market.
Market interactions suggest that demand trends are reverting to pre-GST 2.0 levels, with compact and mid-sized SUVs continuing to lead the segment. While premium hatchbacks and SUVs remain strong performers, small cars have witnessed a 30–40 per cent increase in bookings — largely driven by rural demand and higher festive discounts.
However, analysts caution that this surge in small car demand may not be sustainable beyond January 2026. “The current momentum in the small car segment is heavily reliant on discounts and promotional offers, which are likely to taper off post the festive period,” the report said.
Experts suggest that a sustained recovery in the small car category will depend on further price cuts or the introduction of new models in the coming months. Meanwhile, the ongoing wedding season and attractive exchange offers are expected to provide a temporary boost to sales across entry-level vehicle segments.
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