Archive · 3 Jun 2025
BofA Predicts Auto Recovery in FY26 Second Half
An expert at BofA Securities, Gunjan Prithyani, believes that the Indian car market might get better in the second half of the 2025-2026 financial year.
This could happen because of new cars coming out, cheaper loans, and government help.
Right now, most car types aren't selling much, except for tractors, which are doing well.
There's more interest in electric cars, especially in the four-wheeler segment.
The industry also wants the government to lower the tax on two-wheelers to make them more affordable.
BofA Securities forecasts a potential auto market revival in the second half of FY26.
New product launches, lower interest rates, and policy support are cited as key drivers.
Most vehicle segments have shown limited growth in recent months, except for tractors.
Interest in EVs is shifting more towards four-wheelers in the Indian market.
The industry seeks a lower GST rate for two-wheelers to improve affordability.
- Who
- Gunjan Prithyani, Senior Analyst at BofA Securities, and the auto industry.
- What
- Auto market recovery forecast, potential drivers discussed.
- When
- Second half of FY26 (2025-2026).
- Where
- India
- Why
- New launches, lower interest rates, and policy support are expected to drive recovery.
- Analyst
- Gunjan Prithyani
- Company
- BofA Securities
- Forecast Period
- Second half of FY26
- Key Drivers
- New product launches, lower interest rates, policy support
- Current Growth
- Limited in most segments, tractors stand out
- EV Focus Shift
- More towards four-wheelers
- Two-wheeler GST
- Industry seeks lower tax rate