On the bedrock of additional infrastructure cess, SIAM cuts passenger vehicle growth forecast

Society of Indian Automobile Manufacturers the most elite body of the Indian vehicle industry has cut down the growth rate in its forecast for both current & FY 2016-17. The society has earlier forecasted that the passenger vehicle has will grow at 8% this year & 12% in FY 2016-17. However as per its recent update it cut down the growth in this fiscal to 6-8% & FY 2016-17 to 11%.

"Although we had forecast initially in the beginning of this fiscal that we expect growth of PVs to be 6-8 per cent, we have increased it to around 10 per cent when sales picked up during the year. Now due to the infrastructure cess we are revising it back to 6-8 per cent," Siam Deputy Director General Sugato Sen told PTI.

Explaining the rationale, he said, "Usually March is a good month for the auto industry from a sales point of view but this year it may not be after post Budget announcements. This March is going to be a difficult one.”

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It’s been two consecutive months where we saw the decline in passenger car sales, latest it fell 4.2 percent in February, lowering the overall growth outlook for the year to end-March.

As an aftermath of the announcement most of the automobile manufacturers have already started revising the prices of all their models.

This announcement is expected to give a push to the used cars segment as more people are likely to get inclined towards a used car. This will help buy the choice of their car by paying fewer price.

If you are looking ahead to buy a used car than paying a visit to Shriram Automall will certainly be helpful as the company offers the widest range of used cars, SUVs & taxis etc. at competitive price.