Indian auto-parts maker Samvardhana Motherson posted a 16.5 per cent rise in quarterly profit on Tuesday, helped ‍by steady demand ​from automakers as vehicle sales picked up after recent tax cuts.

Profit rose to ₹1,024 crore ($113.13 million)in the quarter ended December 31, from ₹879 crore a year ago.

The company reported a 14 per cent rise in revenue from operations to ​31,409 crore, driven by growth in its wiring harness, electronics and diversified industrial segments, the company said.

Shares of the company rose as much as 6 per cent after results.

Indian auto sales got a boost from the government’s sweeping September tax cuts.

Domestic car sales are projected to climb to nearly 6 million units by the end of the decade, driven by rising demand for SUVs and premium vehicles, according to S&P Mobility data.

Samvardhana Motherson, which supplies components to global automakers including Volkswagen , BMW and ‌Mercedes-Benz is positioned to benefit from this ​shift, as higher-end vehicles require more complex wiring systems, modules and electronics, boosting demand for auto parts.