{
  "id": 18341927,
  "title": "Auto demand stays in top gear, but ther's a bump",
  "url": "https://urgent.news/2026/11/05/auto-demand-stays-in-top-gear-but-thers-a-bump",
  "topic": "business",
  "section": "Business",
  "published": "2026-11-05T16:39:23.000Z",
  "source": {
    "name": "The Economic Times",
    "slug": "the-economic-times",
    "url": "https://economictimes.indiatimes.com/industry/auto/auto-news/indias-auto-growth-engine-keeps-humming-but-the-road-ahead-has-a-speed-bump/articleshow/135580716.cms"
  },
  "original_language": "en",
  "account": "The domestic automotive industry is set to maintain its growth pace during the second half of the fiscal year, according to Shenu Agarwal, president of the Society of Indian Automobile Manufacturers (SIAM). While sales will likely slow down due to a high base, factors such as improved affordability, financing support, a strong rural and urban market, and festive demand are expected to contribute to full-year growth.\n\nAgarwal highlighted new vehicle launches, infrastructure spending, healthy freight movement, and fleet replacement as additional drivers of demand. The surge in alternative fuels and electric vehicles (EVs) played a significant role in the 31% increase in passenger vehicle sales during the July-September quarter. Agarwal noted that the EV ecosystem is maturing, with multiple offerings, improving charging networks, and supportive policies.\n\nHowever, the industry faces risks from inflationary pressures, higher interest rates, and rising input costs. Despite these challenges, Agarwal maintains a cautiously optimistic outlook, predicting that growth will remain positive. The industry is also expecting continued demand for cleaner, more efficient vehicles, which will be crucial for India's sustainable mobility transition.\n\nExports remained robust throughout the quarter, with two-wheeler exports growing by 28% to 1.65 million units, three-wheeler exports rising by 30%, and commercial vehicle exports surging by 72.5%. Passenger vehicle exports, however, fell by 5.2% to 229,000 units due to a high base and logistics challenges stemming from the West Asia crisis.\n\nLooking ahead, Agarwal emphasized that the entry-level car segment is experiencing a strong comeback, driven by the recent reduction in GST from September 2025, which led companies to lower prices. This shift is expected to boost consumption among first-time buyers. Overall, with vehicle penetration still relatively low in the country, the automotive industry sees significant room for expansion. The key enablers for this growth, according to Agarwal, include infrastructure investment, sustained economic growth, supportive policies for cleaner mobility, wider networks for charging and alternate fuels, and easier access to financing.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}