India’s apex industry body, Society of Indian Automobile Manufacturers (SIAM) has forecasted a single digit growth for overall vehicles sales in FY20, owing to rise in commodity price, election, below normal monsoon and recent repo rate cut by RBI.
According to SIAM, passenger vehicle sales are projected to grow between 3% and 5% and commercial vehicle at 10-12%. The two-wheeler segment is expected to grow between 5-7% and three wheeler segment is pegged to grow between 7-9%.
Driving this growth will be overall infrastructure and gross domestic product that is estimated to grow at 7% during FY20. Other reason cited for growth was pre-buying of BS-IV vehicles in FY20 before BS-VI implementation and several new launches in the current fiscal year.
Rajan Wadhera, president, SIAM, said, “Auto Industry growth story will likely to remain intact with GDP growth outlook and infrastructure expenditure”.
However, despite positive outlook projections, key concerns relate to below normal monsoons, political uncertainty and dipped consumer sentiment continue to be challenges for the auto industry.
Indian automotive industry saw marginal increase of 5% at 26,267,783 units in FY19, as per the data by SIAM.