New model pipeline remains beaming in the PV segment
- According to ICRA Competition likely to heat up in the Compact UV and Notchback (Mid Sedan) segment
- Hybrid buses present a sizeable opportunity for CV OEMs in India backed by an favorable incentive program
- Passenger Vehicles: Compact Cars & Compact UVs were key focus area for OEMs
- Renault aims to further expand market share with launch of 1.0L and AMT variants; however, ability to ramp-up production quickly remains a key.
- According to ICRA , in price conscious Indian PV market, premium compact hatchbacks (i20, Baleno) are growing at much faster pace than entry level compact hatchback
- Compact sedans (notchbacks) remain key attraction for OEMs with multiple launches expected in the segment.
- Larger UV segment has remained laggard over last 2-3 years; however, several new models in larger UV segment should help segment to register healthy growth going forward
- M&M continue to maintain strong presence in UV2+ segment, with over 48.2% share during 10m FY16
- ICRA feels The new Signa range of trucks will eventually replace the existing range of conventional trucks
- The penetration of CNG or Diesel hybrid buses in India will depend to a great extent on the pricing (post subsidy reimbursement under the GOI’s FAME program)
- New Diesel hybrid bus also promises to overcome the shortcomings of an electric vehicle by using an ‘ultra capacitor’ technology.
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