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