FADA: Record July Auto Sales, EV Demand Surges. What's Next For Auto Stocks?

India’s auto retail sales touched a record high in July, with all six vehicle segments posting their best-ever July performance, according to FADA. EV sales and penetration also reached new highs, reflecting strong consumer demand. Ambareesh Baliga, Market Analyst, said the numbers were better than expected and highlighted that demand remains robust, particularly for electric vehicles. While margin pressure from higher raw material costs affected the first quarter, recent price hikes by automakers could improve profitability in the second quarter. He expects stronger Q2 earnings, supported by healthy demand and the upcoming festive season.