Insta
Not Everyone Wants A Car Right Now: CRISIL Downgrades Growth Forecast For Passenger Vehicles By Two Percent
Swarajya Staff
Nov 23, 2018, 04:05 PM | Updated 04:05 PM IST
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
CRISIL Ratings has revised its volume growth forecast for passenger vehicles downwards to 7-9 per cent (from earlier forecast of 9-11 per cent) for the current financial year (FY19), Business Standard has reported.
It attributed the downgrade to muted consumer demand and higher inventory stock with the companies. “Dusshera and Diwali period (September and October/November), which typically contributes a fifth of annual sales, haven't exactly sparkled for automobile makers or original equipment manufacturers (OEMs).”
It was earlier reported that festive auto sales for 2018 were the lowest in the past five years. Higher upfront insurance costs due to the latest Supreme Court judgement, rising oil prices and depreciating rupee contributed to the sluggish growth.
“Consequently, we are trimming 200 basis points from our earlier growth forecast of 9-11 per cent for the passenger vehicles industry to 7-9 per cent,” the CRISIL report added.
However, the commercial vehicle segment, which includes heavy-duty vehicles like buses and trucks, recorded its double-digit growth rate for the twelfth consecutive month. The sales grew by 25 per cent in October over the same period last year.
Also Read : Why The Automobile Industry Is About To Choke On Its Own Growth Story
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
Introducing ElectionsHQ + 50 Ground Reports Project
The 2024 elections might seem easy to guess, but there are some important questions that shouldn't be missed.
Do freebies still sway voters? Do people prioritise infrastructure when voting? How will Punjab vote?
The answers to these questions provide great insights into where we, as a country, are headed in the years to come.
Swarajya is starting a project with an aim to do 50 solid ground stories and a smart commentary service on WhatsApp, a one-of-a-kind. We'd love your support during this election season.
Click below to contribute.