The passenger vehicle (PV) industry’s domestic volume is likely to grow 5-7% in FY16 supported by return of first-time buyers, replacement demand owing to large base of FY10-11 buyers and aggressive new launches planned in the compact utility vehicle (UV) segment. According to Icra’s research update on PV industry, the luxury car market will outpace overall PV growth and is likely to grow at 15%-20% in current fiscal.
As per SIAM data, the PV sales grew 9.98% y-o-y in April-May period. Within the PV segment, passenger cars, utility vehicles and vans grew 12.70%, 2.16% and 6.11%, respectively in April-May over the same period last year. For the first two months of current fiscal, the domestic passenger vehicles sale stood higher at 4,35,660 units compared with 3,96,115 units sold in April-May 2014. Within this, cars sales in April-May stood at 3,19,665 against 2,83,631 units in April-May of 2014. Utility vehicles sales stood at 86,786 (84,947) and van sales increased to 29,219 units (27,537 units), SIAM data pointed out.
According to Icra, the PV industry grew 3.9% in FY15 in contrast with the 6.1% decline in the industry volume in FY14. Amongst various automotive segments, cars (72% of industry volume) and utility vehicle (21% of industry volume) segments registered a growth of 5% and 5.3%, respectively, in FY15.
Debopam Chaudhuri, the vice-president of research at ZyFin Research, said: “It is encouraging to note a recovery in passenger car sales data. Interestingly, a recovery in car sales was indicated through the ZyFin Vehicle Purchase Sentiment Index, which captures willingness among consumers to purchase 2 and 4 wheelers in the near future. The index has been on an uptrend since October 2014 suggesting a growing number of Indian consumers planning to buy a vehicle. The score improved to 22.1 in May 2015 from 12.9 in May 2014. We expect car sales to recover further over the next couple of quarters."