Auto

The recent reduction in Goods and Services Tax (GST) rates on automobiles has inadvertently created disruptions in the auto financing market, with several customers cancelling their existing car loans to take advantage of lower vehicle prices. Lenders, dealers, and automakers are grappling with the unexpected fallout as buyers reconsider loan agreements signed prior to the tax revision.

Mahindra & Mahindra Ltd., one of India’s leading automotive manufacturers, is preparing to scale up its production capabilities and strengthen its after-sales footprint through a new manufacturing plant and an expanded service network. The move comes as demand for passenger vehicles, SUVs, and electric models continues to climb both domestically and in select overseas markets. With this investment, Mahindra seeks to address capacity constraints, reduce delivery timelines, and ensure stronger customer engagement.

India’s auto retail sector experienced a moderate slowdown in July, with overall sales declining 5% year-on-year amid monsoon disruptions, overstocked inventories, and muted demand in key segments. Two-wheelers, passenger vehicles, and tractors saw negative growth, indicating cautious consumer sentiment despite favorable macroeconomic conditions. Commercial vehicles, however, posted a marginal uptick, aided by pre-festive procurement and infrastructure activity.