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Two-wheelers Take the Cake
Oct 1, 2016

In the first five months of FY17, the Indian auto industry has put up a relatively decent show. This time, two-wheelers have done the best so far. Last year was pretty sluggish for two-wheelers as a poor monsoon season hampered crop production. As a result, incomes in the rural regions took a hit and hampered demand for two wheelers. Against this backdrop, the start this fiscal has been good for the two-wheeler industry. The management of the top two-wheeler players had indicated that things would pick up in the latter half of the fiscal. Given that monsoons have been good and the festive season has started, the numbers for the upcoming months are likely to be better.

The growth in passenger vehicles (PVs) was largely driven by utility vehicles (UVs). New product launches helped a lot. After several quarters of scorching growth in medium and heavy commercial vehicles (MHCVs), the performance in the first five months of this fiscal was sluggish, However, light commercial vehicles (LCVs), which have done badly in recent times, finally started showing noticeable signs of a recovery as volumes grew faster than MHCVs.

Exports fell during this period as conditions continues to remain weak in the African countries on account of non-availability of foreign exchange and currency devaluations.

Data Source: SIAM

This Chart Of The Day was published in The 5 Minute WrapUp - What the LoC Strikes Mean for Your Portfolio

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