With the kaleidoscope of celebrations between August and November, consumers have their eyes set on petrol and diesel rates, which have remained steady, and high, for two years now.
Demand momentum to continue in FY2024 with 6-9% YoY revenue growth. Inflation to dampen operating margins to a range of 10.5%-12.5% in FY2024 compared to 12.4% in FY2023, ICRA said.
Global crude oil prices have surged from around $75 per barrel to above $94 per barrel since the beginning of July. Analysts expect the crude prices to cross the $100 per barrel mark in the next two months.
According to FADA, the auto retail sales in June demonstrated a 10% year-on-year growth, encompassing positive performances across various vehicle categories, including 2-wheelers, 3-wheelers, passenger vehicles, tractors and commercial vehicles.
Factors like improving consumer sentiments, as seen through a continued preference for personal mobility and rising disposable income, easing supply-side constraints, better features in the new product models, change in product-mix with increasing skew towards high-priced vehicles, etc., are expected to favourably support the sales growth in the consumer segment.
Starting April 2023, the automotive industry is set to implement the BS-VI Stage-II norms. A portion of the investment by OEMs would be required to incorporate the onboard self-diagnostic device, in addition to hardware and software upgrades. However, in relation to BS-VI Stage I, the investment required is expected to be relatively modest. Additionally, experts noted that depending on the geopolitical situation, the material costs might go up. In this case too, it is possible for OEMs to consider an increase in prices again.
The government has mandated the central bank to keep the inflation at 4 per cent (+,- 2 per cent). After the February MPC meeting, the RBI had decided to hold its key lending rates steady at record low levels for the 10th straight meeting to support a durable recovery of the economy from the COVID-19 pandemic.
The recent disruption in operations is likely to derail their growth momentum starting from April 2021. The challenges for component manufacturers will be further compounded by the sharp increase in commodity prices, which are generally passed on to OEMs with a lag of 3-6 months. However, adequate liquidity across most of the rated investment grade auto component suppliers should help them tide over the pandemic-related headwinds, ICRA said.
The additional borrowing options would push state fiscal deficits to 4.25-5.52% of gross state domestic product (GSDP).
Availability of raw material at right price remains a concern for the steel sector and then there is the threat of cheap dumping from China, say experts and industry players.
Examining the impact of GST on the road logistics sector, the following key changes are noticeable. So far there has been about 18-20% improvement in trucks TAT because of GST.
Factory output, measured in terms of Index of Industrial Production, grew 8 per cent in June 2016, according to the data released by the Central Statistics Office today.
Despite contraction in sales during Q1 FY 2018, the domestic bus segment would still register a growth of 5-7% in FY 2018 in unit terms aided by pick-up in demand from SRTU segment (backed by GOI’s focus on improving urban as well as rural transportation and focus towards smart cities initiatives).
The impact will be largely similar to the effective rate based on prevailing excise duty and VAT rate, both of which would be subsumed under the GST going forward.
The loans waivers will reduce the burden on farmers and a good monsoon will boost their income –– factors which should raise their disposable income and in turn rural demand.
The two-wheeler industry had witnessed a decline of 6.5 per cent in the five months period between November 2016 and March 2017 when compared with the year-ago period, ICRA said.
The BS norms are emission standards imposed on automobile manufacturers which specify the maximum permissible limits for pollutants in the exhaust fumes of automobiles.
A confluence of factors including waning replacement demand, weak cargo availability from the industrial sectors and uncertainty related to effective taxation due to the enforcement of GST from 1 July 2017 have contributed to the slowdown.
The rating has forecast a growth of about 6-7% for the tractor industry (domestic + exports) in FY2018, which is marginally lower than the long term CAGR estimate of 8-9% for the industry. ICRA says the long term industry drivers continue to remain intact.
Over the next 3 years the export of tyres is projected by rating agency ICRA to grow between 6-8 percent led by stable demand and increased acceptance of Indian tyres in overseas markets both in terms of quality and pricing.
| Name | DIN | Designation | Date of joining | |
|---|---|---|---|---|
| Farisa Zarin | Unlock to View | Unlock to View | Director | 15 Jun,2016 |
| Thomas John Keller Jr | Unlock to View | Unlock to View | Director | 30 Jan,2015 |
| Radhika Vijay Haribhakti | Unlock to View | Unlock to View | Director | 04 Dec,2014 |
| Arun Duggal | Unlock to View | Unlock to View | Director | 11 Nov,2014 |
| Ranjana Agarwal | Unlock to View | Unlock to View | Director | 11 Nov,2014 |
| Min Ye | Unlock to View | Unlock to View | Director | 24 May,2013 |
| Simon Richard Hastilow | Unlock to View | Unlock to View | Director | 24 May,2013 |
| Naresh Takkar | Unlock to View | Unlock to View | Managing director | 01 Jul,2006 |
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