Indian consumers in a better mood compared to last year, hints at buying two and four wheelers
ZyFin Research has today announced the Vehicle Purchase Sentiment Index (VPSI) for May 2015. The index is a barometer of willingness among Indian consumers to purchase automobiles in the next 3-6 months. It is arrived at after polling 3000 consumers across 11 Indian cities every month, representative of the urban middle class. The Index inched up to 22.1 in May'15 compared to a mere 12.8 in May'14, indicating rising propensity to purchase automobiles. The May survey indicates that spending propensity is rising for both two and four wheelers.As per the latest survey, 18% of the respondents were keen to purchase a four wheeler compared to just 9% in May'14. 26% of respondents were planning to buy a two wheeler compared to just 16% in May'14. Based on the survey outcome, there is a consistent recovery in willingness to purchase vehicles among Indian consumers for the first time since 2012. The VPSI levels are highest in Delhi followed by Mangalore and Mumbai while eastern cities like Kolkata and Guwahati are still lagging.
The survey points out that this recovery in willingness to purchase is due to consumers' expectations towards declining interest rates and hence cheap loans as well as higher household income with healing economic growth prospects.
Giving his views on the ZyFin Vehicle Purchase Sentiment Index numbers for the month of May, Mr. Debopam Chaudhuri, Chief Economist, ZyFin Research said, The consistent growth in VPSI is indicative of an inflection point for Indian auto sales. With borrowing comfort slated to rise as rates fall, more consumers would opt for purchasing vehicles, something they have been postponing for the last three years now, as reflected by a steep downtrend in VPSI between 2012-2014.
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