India’s home car business is anticipated to report moderate growth in volumes in FY24, however a sustained restoration in demand sentiments stays to be seen, amid considerations over the impact of an uneven monsoon on rural demand, scores company ICRA stated on October 31.
| Photo Credit: PTI
India’s home car business is anticipated to report moderate growth in volumes in FY24, however a sustained restoration in demand sentiments stays to be seen, amid considerations over the impact of an uneven monsoon on rural demand, scores company ICRA stated on October 31.
The business has been on a comeback path over the previous two years, aided by a restoration in financial actions and elevated mobility though the tempo of revival throughout the assorted automotive segments has been considerably blended, ICRA stated in a assertion.
The passenger car section reached all-time excessive quantity ranges in FY23, aided by a desire for private mobility and secure semiconductor provides and the demand sentiments are anticipated to stay wholesome in the section, 6-9% year-on-year (YoY) growth in FY2024, it added.
Similarly, the business car business’s general business volumes are anticipated to strategy pre-pandemic highs, even because the growth is anticipated to stay at modest ranges in FY24, 2-4% YoY, on a wholesome base.
The section had witnessed a sturdy growth in volumes in FY23 on a curtailed base, ICRA stated.
In distinction to these two segments, the two-wheeler business has continued to wrestle with business volumes nonetheless under the pre-Covid peak ranges, the scores company added.
“We expect growth across the automotive industry segments to remain at moderate levels in FY2024. While the passenger vehicle 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,” ICRA Senior Vice President & Group Head – Corporate Ratings Shamsher Dewan stated.
Even because the demand sentiments in the business car business stay regular, the quantity growth is anticipated to stay low on a wholesome base, he added.
“The impact of an uneven monsoon precipitation on rural demand across segments remains monitorable, even as the government’s efforts on rural infrastructure development, crop procurement etc. remain positive,” Mr. Dewan stated.
With rising per capita incomes, demographic profile, low car penetration, and beneficial coverage surroundings, together with infrastructure growth anticipated to assist develop the business demand at a regular tempo, ICRA had projected a CAGR of round 6-9% throughout the automotive segments over the medium to long run.
