Growth in passenger vehicle sales may be higher than the 6-8 per cent forecast for the current fiscal in view of better outlook for the economy, good monsoon and implementation of the 7th Pay Commission recommendations, SIAM said on July 11.
The Society of Indian Automobile Manufacturers had in April revised downward the growth forecast for passenger vehicle sales at 6-8 per cent for 2016-17 citing burden of high taxation and unfavourable environment around diesel vehicles. In March, it had already lowered the forecast to 11 per cent from 12 per cent stated earlier.
“There is no recalculation (on growth forecast for passenger vehicles) but we are expecting it to be better than that (6-8 per cent),” SIAM Deputy Director General Sugato Sen told reporters here. Explaining the reasons for the auto industry’s cautious optimism, he said the economy is expected to do well, monsoon has been good so far and although the interest rates have remained high they are expected to decline going forward.
source - Indian express.