Auto sector preview: High fuel prices to potentially impact growth

High fuel prices and slow growth of monsoon could affect the sector adversely

Auto sales in India have been on the fast lane since the implementation of goods and services tax (GST) in July 2017, thanks to an increase in consumer spending coupled with exciting launches by the industry and a buoyant rural economy. Automobile sales volumes have grown steadily in the last three quarters, albeit on a lower base. However, renewed interest by buyers and original equipment manufacturers (OEMs) has led to hefty expectations on Dalal Street with Nifty Auto Index being one of the top performing indices of FY18.

In comparison to the financial year 2018-19 (FY18), FY19 has got off to a steady