OREANDA-NEWS. December 15, 2015. Fitch Ratings says in a new report that the low fuel prices and falling Indian interest rates (down by 125bp in 2015) are likely to support the growth of Indian auto manufacturers. We see PV sales up by around 9%-10%, after rising by 7.4 % in January-October 2015 year-on-year, driven by new model launches, the decline in fuel prices and rising disposable income.

Fitch expects the improving economic growth along with a revival in mining activity and replacement demand to result in ongoing sturdy growth continuing in medium and heavy commercial vehicles. However, we expect the two-wheeler growth to remain muted at around 2%-3% in 2016. This is mainly on expectations of weak motorcycle sales, given the fall in rural spending following weak monsoon rains.