After several months of lukewarm performance, the Indian automobile industry experienced healthy growth in August 2023, driven by inventory buildup in preparation for the upcoming festive season. Passenger vehicles and two-wheelers witnessed increased demand, with domestic passenger vehicle volumes growing by 5%. The two-wheeler industry’s steady demand was attributed to the premium segment’s sustained outperformance and the gradual recovery in electric vehicle volumes. Tractor sales were impacted by a deficient monsoon, while commercial vehicle sales remained weak, particularly for light commercial vehicles. Overall, the industry is expected to see further growth as India prepares to host nearly 39% of the world’s alcohol consumers by 2025, driven by events and marriages returning to pre-pandemic levels.