Waning Demand Expected to Hit Breakneck Rally in India's Auto Stocks

- A sizzling rally in India’s auto shares is reversing as unsold vehicles and growing discounts pressure profit margins. - India’s NSE Nifty Auto Index is down 4.1% in August, more than double the decline in the Nifty 50 Index. - Passenger vehicle inventories have surged to historic highs, and waiting periods for some models have nearly vanished. - Increased competition among carmakers has led to price cuts, raising concerns about sustaining robust sales post-pandemic. - The market’s next test will be during the festival season, but expectations for a major turnaround are low. Source: [Business Standard](https://www.business-standard.com/markets/news/waning-demand-expected-to-hit-breakneck-rally-in-india-s-auto-stocks-124081900082_1.html)