Ratings agency ICRA said on Tuesday that India’s domestic automobile industry is estimated to report a modest increase in sales this fiscal year. However, the agency warned that recovery in demand sentiment remains in doubt as concerns persist about the impact of an uneven monsoon on rural demand.
The rating agency said in a statement that while the Indian auto industry has been on a recovery track for the past two years, supported by improved economic activity and improved mobility, the pace of recovery in various sectors of the auto industry has slowed. It was revealed that The industry is “slightly mixed,” PTI reported.
Track growth across segments
The report notes that the passenger car sector recorded record sales in the last fiscal year, driven by a preference for personal mobility and stable semiconductor supplies. The demand mood in this field will continue to remain strong, and growth is expected to be 6-9% on a year-on-year (year-on-year) basis in FY2017.
The commercial vehicle industry is following a similar path, with overall industry sales expected to reach pre-pandemic highs, although growth is expected to remain modest at 2-4% year-on-year. There is. According to the department, sales volume in this sector increased significantly in fiscal 2023.
Meanwhile, the industry’s two-wheeler segment is struggling, with unit sales still below pre-pandemic highs. “We expect growth across automotive industry segments to remain moderate in FY24,” said Shamsher Dewan, senior vice president and head of corporate ratings group at ICRA. Although passenger car sales continue to increase, supported by strong demand factors, the motorcycle industry is also expected to record a moderate increase, partly due to its low base. ”
Dewan further pointed out that despite the stable demand environment, sales growth in the commercial vehicle industry is expected to remain at the lower end on a healthy basis. He said, “Despite the government’s efforts in areas such as rural infrastructure development and agricultural procurement remaining positive, the impact of uneven monsoon rainfall on rural demand across the region remains a subject of monitoring. “It’s happening,” he added.
Also read: Bharti Airtel Q2: Net profit rises 37%, revenue rises to Rs 37,043.8 crore
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