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Passenger car sales to report higher growth in FY16 – India Ratings and Research

passenger car sales fy 2016

India Ratings and Research (Ind-Ra) has stated that auto sales figures over the past 6 months have been sending mixed signals where volume is concerned.

Ind-Ra has amended segment wise forecast for auto sales volume growth expected to be seen in FY16. This is following mixed signals in terms of volumes registered by the auto industry in the past few months. Sales are seeing an improvement where month on month sales of passenger vehicles and medium and heavy commercial vehicles are concerned, however, it is in the area of two wheelers where some weakness is evident.

Revised sales volume growth projections for FY16 now stand at 4% to 7% for passenger vehicles while for light commercial vehicles, growth projections have been revised downwards to -5% to -8%. Where motorcycles are concerned, projections are flat while scooters now stand at 7% to 10% and at 13% to 17% for MHCVs.

July 2015 Two Wheeler sales report

Compared to passenger cars, which is expected to report growth in sales, two wheeler sales growth will remain stagnant.

The demand for two wheelers has dipped especially in rural markets where otherwise demand was at its peak. Demand in other segments such as passenger vehicles and MHCVs have also seen better performance over the past six months due to various factors such as increased disposable income especially among urban buyers, drop in inflation and low cost of ownership.

Scooter and motorcycle sales on the other hand has seen a steady decline in both FY12 and FY13 with motorcycle growth moving into negative in rural markets. Scooter sales dipped by 9.5% in the period April to July 2015 as compared to 20% over the past five financial years and Ind-Ra survey is skeptical of seeing any revival at least in FY16 causing it to scale down sales growth numbers.

News Release

About the author

Pearl Daniels

Pearl Daniels

Former freelance writer, Pearl Daniels is in the auto industry since 2011, having established herself as a widely read staff writer since 2013. Her keen eye for industry news, daily need to break down latest events, and quest to not miss a single launch detail, gives you the most refreshing morning news on weekdays.

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