New York, June 04: Two-wheeler will be the fastest growing segment of the Indian automobile industry, a just released survey by a leading global consulting said. Among the personal transportation vehicles, the motorcycle segment will grow the fastest followed by passenger cars and sale will receive boost from cuts in excise duty, new model launches, higher disposable incomes and a changing consumer mindset, said the survey conducted by frost and sullivan.


The entry of international companies and new technologies have significantly altered the market dynamics in the last few years and increased number of market participants particularly in the passenger car segment is giving rise to excess capacities and forcing price competition, it said.

"The auto industry today is a buyer's market and the general economic slowdown makes it vital for industry participants to stay ahead of demand trends," said frost and Sullivan industry analyst Abhijeet Dey.
"While urban users shift away from economy range cars to higher 'B' segment cars, the former will be pushed into semi-urban and rural markets," Dey predicted.

The shift toward multi-axle vehicles is another positive trend, the survey said. Multi-axles offer much better operating economics than the single-axle and their higher cost means higher revenues for truck manufacturers.

Bureau Report