New Delhi, Jan. 8 -- Amid a sharp recovery in sales, a richer product mix, and stable commodity inflation, analysts expect a strong performance from auto OEMs in the December quarter, projecting most companies to post double-digit net profit growth.

Following GST rationalisation, demand has picked up across segments and appears to have remained intact even after the festive season. More importantly, demand for entry-level vehicles across both two-wheelers (2Ws) and passenger vehicles (PVs) has seen a pickup, making these models more affordable for budget-conscious buyers.

Further, wholesale was strong in December as companies continued to push demand with healthy discounts to sustain growth momentum, helping the sector close the quarter...