New Delhi, Nov. 24 -- The domestic auto sector may witness a demand cycle recovery over the next two to three years, supported by strong macroeconomic stimulus measures such as the upcoming Pay Commission salary revision, income-tax rate reduction, and interest rate cuts, highlighted a report by Incred Research.

The report stated that after a sharp rally in the Nifty Auto Index, which rose 9 per cent following the GST rate cut in August-September 2025, the index has taken a breather and underperformed in recent months. However, analysts expect a positive turnaround ahead.

"We feel macroeconomic stimulus measures like income-tax rate reduction, interest rate cut, and Pay Commission salary revision will drive a two-to-three year demand cy...