Navigating Growth: The Future of India's Passenger Vehicle Market
The domestic passenger vehicle industry is poised for a modest growth of 1-4% in the current fiscal year, according to ICRA. Challenges such as high inventory and a prior year's high sales base could hinder expansion, while ongoing model launches and proposed GST reforms might drive demand in select segments.
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India's domestic passenger vehicle industry is projected to achieve a modest 1-4% growth in wholesale volumes for the fiscal year, reveals a recent report by ratings agency ICRA. This slight expansion follows a 1.1% contraction observed from April to July.
The projected growth faces hurdles due to elevated inventory levels and a high sales base from the previous year. However, new model launches from Original Equipment Manufacturers (OEMs) and anticipated GST rate modifications could boost demand in certain segments.
The government is considering overhauling the Goods and Services Tax, reducing the existing four slabs to just two. Meanwhile, despite flat year-on-year wholesale volumes in July, a sequential increase of 8.9% was recorded as manufacturers prepared for the festive season.
(With inputs from agencies.)
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