A festive season bump would do little to spur a "complete demand turnaround" for tractors and two-wheelers in rural India, as high prices and the driest monsoon in five years have kept festival spending sentiment muted, analysts and experts noted.
India has a line-up of festivals and auspicious periods between August and November, pushing up vehicle sales.
Rural India, which forms nearly two-thirds of the country's population, accounts for 55% of the total two-wheeler sales and a bulk of its tractor purchases.
However, experts have pointed to high borrowing rates and inflationary pressures dampening appetite for vehicle purchases in a region where analysts say investments are heavily "sentiment-driven".