Indian Economy News

Automobile dealership industry revenues to grow by 11-13% in FY24: ICRA

According to the credit rating agency, ICRA, the revenues of the domestic automobile dealership industry are expected to grow by 11-13% in the current fiscal year (FY24). As per the firm, both the anticipated 6-9% volume growth and a rise in vehicle pricing during the current fiscal year will contribute to the revenue growth this fiscal.

Furthermore, because of the factors like improvement in consumer sentiments, easing supply constraints, and better features in new models, among others, will support the sales growth in the consumer segment. On the other hand, in terms of the commercial segment, improvement in economic activities, increment in infrastructure and mining activities investments, and a stable financing environment will support the growth.

According to ICRA, the market for commercial vehicles as a segment is anticipated to be sustained by demand for replacement vehicles, a pick-up in mining activity, infrastructure construction projects, and overall good fleet utilisation levels.

It was noted that the inventory holding levels are likely to increase as compared to the previous two years.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.