India's passenger vehicle sales all set to hit double-digit growth in this fiscal of 2017. This milestone comes after four years in the automobile industry and is expecting to cross the 3 million mark.
Vehicle sales grew 11 to 12 percent in August mainly led by the big two giants in India - Maruti Suzuki and Hyundai Motors India.
With the good monsoon and the upcoming festival season only adds to the sentiment of the rural economy, salary hike for government employees, and strong macroeconomic signals.
Maruti is already boosting the estimates for the year and expects the sales to expand 11 to 12 percent this fiscal year compared to its previous estimate of 7 to 8 percent.
The festive season will kick off from Ganesh Chaturthi and Onam, with sales in Kerala touching 40 percent in August which is the highest in recent years. This is expected to spread across the country.
Also, the interest rates and fuel prices are fairly under control, and discounting and offers remain high indicates high sentiment towards sales of passenger vehicles.