Good days are here (Acche din aa gaye)!
Car sales are growing at their fastest pace in nearly 3 years as it crosses 18% on a year on year term.
Sales of motor cycles though has declined and it has pulled down things from its lifetime best.
But optimism is rising, and there seems to be a growing confidence in government policies. These include increasing FDI limits and a good perception amongst multinational corporations.
In future, we need to be watchful of the monsoons. It will directly impact the sales of motorcyles, which has its biggest market in rural areas. But the distribution chain is also likely to impact passenger vehicles and tertiary sales.
IHS had cut its forecast for India’s passenger vehicle segment, taking into account the below-normal monsoon forecast. It now expects the segment to grow at 7.6%, to 2.57 million units, during 2015-16.
Getting impacted along with these figures will be the new insurance signups and existing insurance premiums. Lets closely watch how things span out!!