Fiscal 2023 turned out to be another strong year for the Indian automobile sector, with double-digit volume growth, backed by pent-up demand and easing of supply chain constraints. Among the automobile segments, passenger vehicles and tractors posted highest all-time sales.
Fiscal 2024 is expected to see moderation in growth, given the high base of the previous fiscal, the rising cost of vehicle ownership due to higher interest rates, and sluggish export demand.
Adoption of electric vehicles (EVs), especially two-wheelers, is projected to continue. But with the government's subsidy scheme to incentivise EV demand set to lapse this fiscal, its impact on the penetration momentum sustaining will bear watching.
On the brighter side, the sector's operating profitability is projected to improve on account of continued volume growth, moderating commodity prices, and realisation of the full impact of vehicle price hikes announced since the third quarter of the previous fiscal.
We expect automotive original equipment manufacturers (OEMs) to step up their expansion plans, mainly in the passenger vehicle and two-wheeler segments, including EVs.
In this milieu, CRISIL is hosting a webinar, where our experts will delve into:
Growth expectations and demand drivers across the segments this fiscal
Key trends in the automobile sectors
Outlook on EV penetration
Profitability and capital spending trends of manufacturers
Credit quality expectations of automotive OEMs
This will be followed by a panel discussion and Q&A.
Disclaimer: This event and its content are intellectual property and confidential information of CRISIL. Any use of the same without written permission of CRISIL is illegal and hence punishable. Recording the webinar in any form in full or part or copying, altering, distributing or streaming the webinar is strictly prohibited and violation will attract legal action.
