- News>
- Economy
Compact and mid-size cars to rule the roost: Icra
New Delhi, Dec 30: The bullish passenger car industry, which is set to grow at eight per cent during the next four years, would be driven by compact and mid-size cars, Icra said in its latest report.
New Delhi, Dec 30: The bullish passenger car industry, which is set to grow at eight per cent during the next four years, would be driven by compact and mid-size cars, Icra said in its latest report.
"Icra expects the demand for passenger cars to grow at eight per cent during FY 2004-2007. Although the mini segment is expected to sustain volumes, it may continue to lose market share with growth in the medium term being led largely by the compact and mid-range cars," it said.
The passenger car industry was likey to maintain the growth next fiscal as current list of positives for the Indian economy outweighs the list of negatives, Icra said.
The reduction of excise duty on cars from 32 per cent to 24 per cent in the last Budget and cut in peak rate of customs duty from 30 per cent to 25 per cent for vehicles brought in as completely knocked down (CKD) and semi knocked down (SKD) kits provided requisite impetus to the industry this year which would propell car sales next year, it pointed out.
Even the rationalisation of the tax structure through implementation of value added tax (VAT) would be beneficial for the sector.
The credit rating agency said the two per cent above normal rainfall, evenly distributed across the country, during June-September 2003 came as incing on the cake which coincided with an upward revision in the growth rate for gross domestic product (GDP) for FY 2004 beyond six per cent.
Bureau Report
The passenger car industry was likey to maintain the growth next fiscal as current list of positives for the Indian economy outweighs the list of negatives, Icra said.
The reduction of excise duty on cars from 32 per cent to 24 per cent in the last Budget and cut in peak rate of customs duty from 30 per cent to 25 per cent for vehicles brought in as completely knocked down (CKD) and semi knocked down (SKD) kits provided requisite impetus to the industry this year which would propell car sales next year, it pointed out.
Even the rationalisation of the tax structure through implementation of value added tax (VAT) would be beneficial for the sector.
The credit rating agency said the two per cent above normal rainfall, evenly distributed across the country, during June-September 2003 came as incing on the cake which coincided with an upward revision in the growth rate for gross domestic product (GDP) for FY 2004 beyond six per cent.
Bureau Report