After a strong run through the festive season, the Indian auto sector could see demand moderating in the coming months as the impact of the GST cut settles, according to Pramod Kumar, India Autos Analyst at UBS.

Speaking to CNBC-TV18 from the side-lines of UBS India Summit 2025, Kumar noted that the September quarter was better than expected as companies navigated GST-related uncertainty effectively.

He pointed out that prior to the GST cut in mid-August, industry growth was sluggish — with two-wheelers growing only 2% and passenger cars showing marginal contraction between April and July. The rate reduction provided timely support, helping boost two-wheeler sales by around 25% and car sales by 6% between August and October.

However, Kumar cautioned that this momentum might not sustain.

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