The Indian automotive industry is on the rise, with a recovery in economic activities and increased mobility over the past two years, said credit rating agency ICRA in its latest report. The passenger vehicle industry reached record volumes in FY23, with a forecast of 6-9% YoY growth in FY24.
The commercial vehicle industry, on the other hand, saw robust growth in FY23, with a modest 2-4% YoY growth expected in FY24. However, the two-wheeler industry continues to struggle, with volumes still below pre-COVID peak levels.
Shamsher Dewan, Senior Vice President & Group Head, Corporate Ratings, ICRA, while commenting on the outlook for the automotive industry, said: “We expect growth across the automotive industry segments to remain at moderate levels in FY24… The impact of an uneven monsoon precipitation on rural demand across segments remains monitorable, even as the government’s efforts on rural infrastructure development, crop procurements etc. remain a positive.”