New Delhi, Sept. 19 -- Discounts in the automobile sector are expected to trend down across key segments as the recent GST cuts are likely to lift demand, according to a report by Motilal Oswal.

The report noted that with a pick-up in demand, discounts should gradually reduce across categories, helping drive margin expansion for automakers.

It stated, "With a pick-up in demand, we also expect discounts to trend down across key segments, which should drive margin expansion going ahead. On the back of demand revival and much better earnings growth."

It added that, on the back of demand revival and a much better earnings growth outlook, the report has raised its volume growth estimates across all key segments for FY26 and FY27.

While the...