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A Subdued FY16 for the Auto Sector
Apr 9, 2016

FY16 turned out to be a tepid year for the Indian auto industry. The only segment that managed to grow in double digits was commercial vehicles (CVs). But this was largely led by medium & heavy CVs. Growth for light CVs remained sluggish as strict financing options remained an issue for this segment and hampered demand.

Two-wheelers struggled this year. The rural economy is a big market for two-wheelers. Thus, as poor monsoons wreaked havoc on crop production, farm incomes reduced and rural demand took a hit. And this impacted volume growth for two-wheeler players.

One interesting development that took place during the year was the launch of Bajaj Auto's quadricycle 'Qute'. The company exported a total of 334 units to 19 markets including Turkey, Russia, Indonesia and Peru. However, the product is still awaiting clearance for sale in India.

Data Source: SIAM

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