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The domestic automotive industry has seen a healthy revival in FY2023, aided by a recovery in economic activities and increased mobility.
Date: January 20, 2023
CHENNAI (TNN): India’s passenger vehicles industry is expected to end FY2023 with a 21%-24% jump in sales and should clock between 6% and 9% increase inFY2024 as well, said a latest report by ICRA.
Even two-wheelers, which struggled in the first half of FY2022-23, are expected to end FY 23 with 9%-12% growth and should continue with 6%-9% growth in FY 2024 as well.
Trucks and buses are back in top gear with 18%-20% estimated growth in FY2023and will continue with 7%-10% expected growth in FY2024, said the report.
The domestic automotive industry has seen a healthy revival in FY2023, aided by a recovery in economic activities and increased mobility. The demand sentiments for passenger vehicles, commercial vehicles and tractors have remained healthy though the two-wheeler industry struggles with overall volumes still below the pre-Covid peak levels.
Shamsher Dewan, senior VP & group head - corporate ratings, ICRA, said: “We expect growth across automotive industry segments to remain at high single-digit levels in FY2024. While the passenger vehicle, commercial vehicle and tractor segment volumes would continue to trend upwards, aided by favourable demand drivers, the two-wheeler industry is also expected to record moderate growth in volumes aided by a low base.
"The Union Budget is expected to include enhanced budgetary outlays towards rural employment under MGNREGA, rural infrastructure development, enhancement of irrigation facilities, crop insurance scheme, as well as an increase in targets for agricultural credit. "With measures to help rural communities expected to be at the heart of its policies, the budget is expected to aid in boosting the rural-led demand across segments,” he added.
