Passenger vehicle makers to spend Rs 65,000 cr on capacity expansion: Icra

Higher production is to cumulatively jack up overall capacity utilisation rate in PV industry to 74% by FY23-end from 59% in FY22

Passenger vehicle makers are expected to spend Rs 65,000 crore between FY23 and FY25, as companies ramp up outlay towards capacity expansion and new product development, credit rating agency Icra said on Monday. 

Better availability of semiconductors has helped companies ramp up production and improve capacity utilisation rate. The higher production is expected to cumulatively jack up overall capacity utilisation rate in the PV industry  to 74 per cent at the end of FY23 from 59 per cent in  FY22, it said. 

"Continuation of the healthy demand trend in the industry is expected to help keep capacity utilisation at comfortable