Tax Cuts Spur Steady India Vehicle Sales in December, FADA Reports

• India's vehicle retail sales are projected to remain steady in December, driven by recent tax cuts and year-end incentives.
• Overall sales grew 2.14% in November, exceeding expectations for a post-festive season slowdown.
• Tax cuts implemented in late September reduced GST on SUVs to 40% and small cars to 18%, leading to a record 40.5% sales growth in October.
• Passenger vehicle inventory decreased to 44-46 days in November, down from 53-55 days in October.
• FADA members are optimistic, with 64% expecting sales growth in December and 74.3% for the next three months, citing factors like the wedding season and new models.

Why It Matters: Tax cuts are boosting vehicle sales, reflecting economic recovery and consumer savings.