Despite global lull in the automotive sector, the Indian car sales are likely to remain robust, global credit rating agency, Moody's Investors service in its latest report has said that the sales of Indian car industry will grow at 9 per cent in 2017 and 7 per cent next year, aided by Goods and Services tax (GST) regime coupled with new model launches.
The rating agency further said that the new tax regime had prompted a number of automakers to lower prices of their passenger vehicles, which had encouraged dealer to restocking and led to a subsequent boost in sales. Moody's is also expecting India’s auto sales to touch 3.6 million unit mark in 2017.
The report further noted that in key markets like China, Japan and India, the steady global GDP growth will drive a bigger demand for cars, while US car sales may weaken and may hamper growth of auto sector globally. Moody's further predicted that China’s auto sales will grow 3 per cent this year and 2 per cent in 2018, while Japanese car sales will grow by a robust 5.6 per cent this year and 2 per cent next year. It also said that automotive demand is poised to bounce back in Brazil, Argentina and Russia as their respective economies emerge from recession.