Passenger vehicles industry estimated to grow up to 9% this fiscal: ICRA

The domestic passenger vehicle (PV) market is estimated to grow by six to nine per cent in the current financial year over the preceding fiscal, according to ratings firm ICRA.

In absolute terms, the PV industry will clock a sales figure of 4.2 million units in the current fiscal.

The report said that dealer inventories remain high despite strong retail sales, and the pace of growth is expected to taper off in the coming financial year.

ICRA said that during the recently concluded festive season, retail sales grew six per cent year-on-year.

The inventory levels in the industry remain high at 50 to 55 days at the end of January 2024.

The utility vehicle (UV) segment continued to expand led by a shift in customer preferences coupled with a slew of product launches.

The demand for the entry car segment remained muted, the report said.

The availability of alternative fuels like CNG and electricity is steadily on the rise aided by the introduction of new models.

The capital expenditure outlay for the original equivalent manufacturers (OEM) is estimated to remain high over the next few fiscal, the report said.