India’s auto industry continues to ride a wave of strong momentum, and Sai Giridhar, Vice President at FADA, offers a comprehensive and optimistic outlook
for what lies ahead. Speaking on ET Now, Giridhar highlighted that post-festive demand has remained strong across all major vehicle segments. Even during November, the sector delivered impressive numbers despite last year’s Diwali spillover. Passenger vehicles recorded nearly 20% growth, while the overall auto industry posted around 10% growth during the first eight months of FY26, signalling a sharp rebound compared to the modest 3.5% growth seen between April and September. According to Giridhar, this improvement reflects a widespread recovery across two-wheelers, three-wheelers, four-wheelers, and commercial vehicles, rather than growth concentrated in a single category. He attributes this broad-based expansion to several favourable macroeconomic factors, including GST-led structural efficiencies, repo rate cuts, and lower interest rates on vehicle loans, all of which have strengthened consumer sentiment. With these tailwinds in place, Giridhar expressed confidence that FY26 is set to conclude with double-digit growth, and the momentum is well-positioned to carry forward into FY27. He also noted historical patterns-such as the trend where excise duty cuts have triggered multi-year demand spikes in two-wheelers-as evidence that the current upcycle could remain intact even on a high base. On the demand front, urban markets have been leading the recovery, especially in the last month. However, Giridhar expects rural demand to bounce back strongly as well, supported by encouraging sowing activity and improving economic factors. Passenger vehicle demand, which hovered at below 3.5% growth earlier in the year, has now climbed to around eight percent, reflecting this broad uplift. A major positive development, he said, is the normalisation of inventory levels. Two-wheelers have maintained comfortable inventory positions for over a year, while passenger vehicle inventories-formerly a key concern, have now started to decline sharply at dealerships. Giridhar anticipates that December could close with the lowest inventory levels in more than a year, with OEMs planning production in a way that keeps January rollover stock minimal. When discussing long-term opportunities, Giridhar emphasised that every part of the auto value chain-OEMs, component manufacturers, and distributors-stands to benefit from India’s ongoing mobility expansion. With India’s vehicle ownership still around 32 per 1,000 people, compared to Brazil’s 400 and China’s 250, the potential for growth remains enormous. He believes this is the best period in years for anyone involved in the automobile ecosystem, as India’s auto sector appears primed for sustained double-digit growth well into FY27.
