In the history of the Indian Automobile Industry, the financial year 2018 is going to be reported as the best year. Due to good monsoon, rise in rural demand, and strong economic growth, the country is anticipated to record high growth in all segments of the industry. The fiscal year 2018, total sales growth of automobiles can be in double-digits, which is the highest in the last six years since Fiscal Year 2012.
The uncertainty created on the taxation front, on the implementation of GST, despite the transition from BS III to BS IV, the industry is getting an appreciable growth. Due to these factors, there was a negative impact on demand and supply in the first quarter of the fiscal year 2018, especially in the commercial vehicle segment.
The total domestic sales growth in the automobile industry is estimated to be 13 to 15%. In this, the growth of every segment, including two-wheeler, three-wheelers, commercial vehicle (excluding passenger vehicle), has been in double digit. Domestic two-wheelers market is expected to cross 2 Million mark with 14% sales growth while the Three Wheeler Market can reach up to 10 Lakh with 25% growth.
In the fiscal year 2018, the growth rate of Passenger Vehicle Segment can be maintained and it can reach the level of about 32.8 Lakh with 8% growth in sales. Due to the increase in sales in the rural areas and the smooth movement of goods, the growth of two-wheeler and commercial vehicle segment is also expected to be the highest in the last six years.
Mr. Subrata Ray, Senior Group Vice President of ICRA Limited said, “The purchase that was postponed in the fiscal Year 2017 was completed in 2018, whose effect is visible in sales data. According to our estimates, this Momentum can also remain in the fiscal year 2019.