Angel Broking believes that fiscal 2016 started on a strong note for the passenger vehicle (PV) industry. The PV industry reported a strong growth of 20% for the month of April 2015. Increased proportion of first time buyers (who prefer entry level cars) and improvement in the urban income levels due to improvement in the economy boosted industry volumes.
''Two-wheeler (2W) and tractor sales continued to be impacted by slowdown in rural economy which is due to crop damage due to unseasonal rains over the last two months. Further, lower mandi prices have also impacted rural income. 2W sales were flat, while tractor sales dipped by 16% yoy,'' it said.
''The PV segment growth accelerated in the month of April 2016 with the segment reporting a strong double-digit growth. The segment surprised with a robust growth of 20% yoy (top six players). Growth was led by market leader Maruti Suzuki which saw an increase in the entry level segment sales due to surge in the number of first time buyers. Tata Motors continued to gain market share (reported a 38% yoy growth) on success of new launches. The Indian arms of the MNCs - Honda and Hyundai, underperformed, growing by 15% and 10% yoy, respectively,'' it added.
Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.