CHENNAI: The last financial year has been a positive year for the auto sector, with domestic passenger car sales growth hitting a five-year high at 7.87 per cent over FY 2014-15.
The only shadow cast on the industry’s annual numbers has been the negative growth seen in passenger car exports and domestic sales of motorcycles and mopeds.
Scooters, however, clocked a comfortable 11.79 per cent rise in domestic sales, and 31.77 per cent surge in exports. At 11.5 per cent growth, the total commercial vehicle segment has done well.
Going forward, industry experts expect the growth momentum to continue. “We expect moderate sales growth in the range of 8-9 per cent to continue this year and this will be driven by economic recovery, low fuel prices and interest rate,” said Rajeev Singh, Partner and Head, Automotive Sector, KPMG.
“The expectation of good monsoon may influence the demand in rural markets for entry level products,” said Kumar Kandaswami, senior director, Deloitte India.
The coming year could also see minor changes in trends in passenger cars. Traditionally a small car market, Singh says there is strong potential in entry level segment and the Indian consumer perception towards sedans is changing more towards compact and micro SUVs.