Credit rating agency ICRA on Friday said it has revised upwards its growth estimates for the passenger vehicle sector in the backdrop of better than expected ramp-up in demand momentum.
According to the investment information and credit rating agency, it has revised upward its growth outlook for FY2017 to 10-12 per cent from an earlier range of 8.5-9.5 per cent.
"The FY2017 performance will also benefit from the lower base of FY2016, as a majority of successful launches happened during H2FY2016 and hence didn't contribute to the full-year volume," said Subrata Ray, Senior Group Vice President, Corporate Sector Ratings, ICRA.
"Given the low penetration levels in the country, the long-term prospects of the industry remain favourable."
The credit rating agency attributed the stellar growth in last few months on low cost of ownership, payout of the 7th pay commission as well as normal monsoon after two consecutive deficient years of rainfall.
--IANS
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