Second month into the financial year 2017-18, and most of the passenger vehicle manufacturers continued to grow in double digits. The utility vehicle segment remained the star attraction though sedans also attracted buyers who were keen on upgrading to the next level from the hatchback segment. With good monsoons forecast this year, rural sales should give a leg up to the traditional UV market, LCVs and motorcycles dependent on agricultural demand, with more disposable income to spend. Moreover, with the GST regime set to tax SUVs at a lower rate compared to smaller cars, the SUV market is expected to boom. Other vehicle segments are also expected to benefit as a spin-off. Meanwhile, two-wheeler sales have begun to capitalise on their new BS-IV equipped scooter and bike variants that are drawing buyers to the showrooms. But the same cannot be said of the commercial vehicle industry that is yet to shrug off the ill effects of the pre-buying that happened prior to the close of the BS-III emission regime on 31 March 2017. It is expected to slow down sales especially of M&HCVs in Q1 of FY’18. Sales are likely to pick up in the
second quarter.
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