Companies & Sectors
Fuel prices and RBI policy to fuel passenger vehicle demand in 2017: Fitch
Low fuel prices coupled with an accommodative monetary policy from the Reserve Bank of India (RBI) is what credit rating agency Fitch Ratings expects to support demand for passenger vehicles in 2017.
 
According to Fitch, the demonetisation of 500/1,000-rupee notes would impact sales of luxury cars and not sales of other automobiles -- two wheelers, small cars and commercial vehicles.
 
"Undeclared income is less often used to buy small cars, and two-wheeled and commercial vehicles, so sales of these are likely to stabilise quickly once the liquidity situation in the economy is restored in the near future," Fitch said on Wednesday.
 
"We expect PV (passenger vehicles) sales to increase by seven per cent - nine per cent, after rising 12.3 per cent YoY (Year-on-Year) in April-September 2016, due to improving consumer confidence, new model launches and the lifting of a ban on the sale of diesel cars in Delhi," Fitch said about 2017 sales outlook for automobiles.
 
According to Fitch, the rollout of the Goods and Services Tax (GST) in its current form would be largely price neutral because the proposed rates are in line with the existing level of taxes.
 
Fitch expects auto sales to benefit from India's strong gross domestic product (GDP) growth, which the agency forecasts at 6.9 per cent in the fiscal year ending March 31, 2017, (FY17) and 7.7 per cent in FY18.
 
The credit rating agency said sales of medium and heavy commercial vehicles (MHCV) rose about 30 per cent YoY in FY16, although they decreased slightly by 1.2 per cent YoY during April-September 2016.
 
Fitch expects MHCV sales to improve with progress on stalled infrastructure projects and gradual recovery in mining activity after metal prices bottomed out in 2016.
 
The agency said MHCV sales to benefit from buying ahead of an expected increase in prices when new emission standards (BS IV) are implemented from April 1, 2017.
 
Fitch expects light commercial vehicles (LCV) sales to continue to rise, and a significant demand boost if the GST -- which will create an unified national market that would allow more efficient movement of goods -- is rolled out in April 2017 as planned.
 
Similarly, sales of two-wheelers would continue to rise due to rise in public sector wages and healthy rural spending.
 
Two-wheeler exports are likely to remain subdued due to macroeconomic weakness in Latin America and Africa, following a 12.4 per cent YoY decline in April-September 2016.
 
Many companies, including Maruti Suzuki, Toyota and Royal Enfield, have announced plans to expand capacity, which will increase capex.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

 

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COMMENTS

B. Yerram Raju

5 days ago

All wide-bodied and luxury cars should be manufactured for export markets.

B. Yerram Raju

5 days ago

Narrow roads of India sport wide-bodied cars. Why not car makers realise that the small cars carry big ticket sales than the luxury cars? Why not the Government modify its tax structure to incentivise production and sale of small cars and insist on all the Government officers to have only small cars for ferrying them from office to home? The moment a bureaucrat becomes eligible for official car the chosen car is luxury car!! All the politicians also have only luxury cars and at huge expenditure to the exchequer as these consume more fuel than the small or medium sized cars.

Supreme Court orders playing of National Anthem in movie theatres
The Supreme Court on Wednesday ordered that the National Anthem be played in cinema halls before the start of a movie.
 
The anthem would be accompanied by the image of the Tricolor on the screen.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
 

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COMMENTS

vinod sharma p

4 days ago

As a common-man seeing the ground reality, I am not very happy with this decision. Reason is that, I know the majority of the people in the audience will not feel the real respect due for the national anthem if it is forcefully played like this.

Simple Indian

5 days ago

This is yet another case of judicial overreach. Courts should not impose nationalism / patriotism on citizens, as respect for nation should be inspired by actions of our leaders. All MPs take oath on Constitution but go on to abuse it during their tenure. It's time the Courts took suo motu action against public servants who have ruined the country through rampant omnipresent corruption. Such issues of national interest are far more important than SC entertaining such silly PILs (incl. Santa-Banta jokes PIL).

Tata Power calls EGM on December 26 to remove Mistry
The Tata Power Co Ltd on Tuesday said it has called an Extraordinary General Meeting to consider and pass a resolution seeking removal of Cyrus P. Mistry as its director.
 
The EGM will be held on December 26 at the Y.B. Chavan Centre, the company said in a filing with the BSE.
 
Referring to a Special Notice and Requisition, it informed BSE about the EGM to consider a resolution and pass it under Section 169 of the Companies Act.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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