Passenger vehicle sales forecast to grow at 9-11% over the next five years

imagesSource : Business Standard

Mumbai: Passenger vehicles sales in India, the world’s fifth largest car market, are expected to expand at a faster pace over the next five years as pay raises for government employees, courtesy the 7th Pay Commission, and a recovery in rural incomes boost demand for personal transport.

Low fuel prices and interest rates are also likely to encourage purchases.

Despite the shock currency invalidation in November that sucked out 86% of money in circulation, passenger vehicles sales in India advanced 9% in fiscal 2016-17—the quickest in six years, crossing the 3-million mark for the first time, auto industry lobby group Society of Indian Automobile Manufacturer (Siam) said last month. The research arm of rating agency ICRA Ltd on Tuesday said it estimates passenger vehicles sales in India to grow by 9-10% in the current fiscal year and a 9-11% mean annual growth rate over the next five years. Others are equally bullish.

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