New Delhi, July 21 -- The positive macroeconomic indicators of Indian economy, such as income tax cuts, easing lending rates, and above-normal rainfall, have not yet translated into a revival in vehicle demand in the country, according to a report by Incred Equities.

According to the report the domestic automobile dispatch volumes declined in the first quarter of the current financial year, with motorcycles and cars being the most impacted segments.

It stated that "As favourable macroeconomic variables like the income tax rate cut, easing lending rates, and above-normal rainfall are yet to revive volume growth, we remain cautious at the 10-year mean forward P/E valuation of the Nity Auto Index".

The report highlighted that motorcycles ...