The Indian passenger vehicle (PV) industry’s domestic volumes are expected to grow by 9.5% in 2017, while that of medium & heavy commercial vehicles (M&HCV) is expected to grow by 15%, said Icra in its study released on Thursday.
Supported by the return of the first-time buyers, the passenger vehicle industry will grow moderately to 9.5%.
While there are some concerns related to 2-4% additional infrastructure cess, however, the expected pick-up in the economy, favourable monsoon as well as benefits of the 7th Pay Commission, will support overall growth in the domestic PV sector, Icra said in its study on PV and CV sectors.
The domestic PV volume is pegged at 3 million units, including small, mid-size cars, compact/super compact, utility vehicles, SUVs. In FY2016, industry has registered a growth of 7.2% YoY vis-à-vis a decline of 3.9% in FY 2015.
Over the last two fiscals domestic PV growth has primarily been supported by new launches in compact/super compact cars and compact UV segment.