Highlighting auto industry’s quick revival from the negative impact of note ban, global ratings agency, Fitch Ratings in its latest report has said that Indian passenger vehicles (PV) and two-wheelers sales are likely to continue growing in high single digits in the near term, backed by sustained low cost of ownership and healthy rural spending due to good monsoons and higher public-sector wages.
As far as commercial vehicles (CV) were concerned, sales of medium and heavy commercial vehicles (MHCV) grew 20 per cent year-on-year in the quarter to September 2017 after declining in 2016. It further said that CV sales are expected to benefit from the government's infrastructure spending and more- efficient interstate movement of goods after the GST came into effect
Fitch Ratings ‘2018 outlook of Asia Pacific automotive manufacturers and suppliers’ report, automobile manufacturers’ spending on research and development (R&D) is expected to remain high due to focus on new BS VI emission compliant models. Leading automakers intend to invest in electric vehicles (EVS) after the government took steps to promote the switch to EVs over the long term. Fitch Ratings further said that component suppliers will benefit from growth in India and key overseas markets, including the CV market in the US, which showed signs of recovery in 2017.