Financial year 2016 saw most segments post growth in sales and FY 2017 is expected to be no different for the auto industry.
ET Auto Business Sentiment Survey FY 2017, which was held in May and saw participation by over 1000 respondents, pointed that passenger vehicle segment could well grow between 5 to 8 per cent. Even SIAM has forecast that the growth in this segment will be 6-8 per cent in FY 17. The growth in PV segment last fiscal was fuelled by both cars, which grew by 7.8 per cent, and also utility vehicles which saw numerous big-ticket launches including Hyundai Creta , Mahindra TUV300 , Maruti Suzuki S-Cross and Vitara Brezza. Overall PV segment grew by 7.2 per cent in FY 2016. The ongoing policy changes is expected to bear a significant impact on the sales of passenger vehicles in the coming year. Nearly 62 per cent of the respondents of ETAuto survey were of the view that policy changes like additional infrastructure cess and luxury cess will effect the sales in the segment.