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Budget FY 2018-19: Commercial Automobile Sector to Grow
- DetailsWritten by PolicyBazaar -
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Modified 05 February 2018
After a phenomenal growth of approximately 20 percent in the fiscal year 2017-18, light commercial vehicles are likely to grow by 10 to 12 percent in the fiscal year 2018-19, along with improvement in private consumption and higher replacement demand.
After an expected growth of more than 10 percent in fiscal 2018, Medium and heavy commercial vehicles are expected to grow at the rate of 5 to 7 percent in fiscal 2019. Medium and heavy commercial vehicles will witness a decline in their replacement demand due to GST & an increasing inclination towards higher tonnage vehicles.
Demand for buses shrank in the fiscal year 2017-18, but it’s expected to expand up to 10 percent in the fiscal year 2019-20. The utility automobile sector is likely to grow in 2019 due to an increased demand for trendy models.
2019 will witness the end of GST introductory issues. Also, generous contributions by the traders will aid GST’s growth.
High demand in rural areas & Pay Commission payouts to trigger demand for two-wheelers
The demand for two-wheelers is expected to remain positive in the financial year 2019. It will be supported by enhanced affordability due to Pay Commission payouts.
Combined braking system installations are likely to increase the costs up to Rs. 1000 for those two-wheeler models which lack them at present. However, it is expected to have a minimal impact on two-wheeler sales, since most two-wheeler models come with pre-installed CBS.
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