The auto sector in India has seen strong growth over the past year, outperforming the broader market, driven by lower interest rates, low manufacturing costs, and rising consumer confidence. Government stimulus and increasing rural sales have further supported over 35% annual investment growth in the industry over the last five years.

1. Favorable Factors Lower interest rate

2. Low cost manufacturing skills

3. The Indian Auto Sector has outperformed the Sensex by 35% in the last 12 months, rising by 37% on an absolute basis.

4. Expanding liquidity Rising consumer confidence Positive growth of 12.1% in the Q1 sales report The investment in the industry have increased at a CAGR of 35% over the last five years Stimulus package announced by government Rise of sales from rural market

5. Recommendations