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Indian Three-Wheeler Industry Faces Headwinds - ICRA

Auto News - Published on Mon, 29 Jul 2019

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Indian three-wheeler industry is facing headwinds after experiencing growth for two consecutive years, majorly due to the NBFC crisis impacting the financing avenues available for the segment, ICRA ratings has revealed in a release.

The industry had grown by 24% and 37% respectively during FY2018 and H1 FY2019. The segment experienced dream run in both domestic and export markets, supported primarily by relaxation of the permit regime in certain key states in India.

Ms Sruthi Thomas, Senior Analyst, ICRA Ratings, said that "The abolition of permit regime in large three-wheeler markets like Maharashtra and Gujarat along with issuance of fresh permits in states like Delhi, Karnataka, Andhra Pradesh and Telangana had extended the much-needed impetus to the domestic three-wheeler volumes in FY2018 and H1 FY2019." She also added that "However, the segment has declined since the latter half of FY2019, impacted primarily by the high base and the liquidity constraints in the economy, which has blocked potential financing avenues available for three-wheeler buyers."

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Posted By : Mohan Sharma on Mon, 29 Jul 2019
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