Renault-Nissan Could Emerge As A Challenger To Maruti Suzuki, Says Credit Suisse
Credit Suisse expects the passenger car sales to grow by 15 percent in FY18-19.
- Credit Suisse expects passenger vehicle sales to rise at 15 percent in FY18
- Renault-Nissan may challenge Maruti Suzuki, says the brokerage house
- Tata Motors may emerge as the dark horse
Passenger vehicle sales would have clocked double-digit growth in the year ended March, had it not been for demonetisation, said brokerage house Credit Suisse. A good monsoon, low inflation and lower interest rates will aid car sales in the current financial year, said the brokerage house.
Credit Suisse has forecast annual passenger sales growth at around 15 percent in 2017-18. The brokerage has divided the car industry in India into four categories, with the country's largest carmaker Maruti Suzuki Ltd., Hyundai Motors India Ltd., Tata Motors Ltd. and the Renault-Nissan alliance emerging as the main challengers, according to Credit Suisse.
Japanese auto giants Toyota and Honda have been categorised under the niche player segment as a bulk of their cars sold are more than four metres long. New entrants include Peugeot and Hyundai's sister brand Kia and then there are the help seekers like Ford and Volkswagen, which continue to command a very small market share despite being in the country for a long time. General Motors recently decided to stop selling cars in India.
Stringent regulations may remain a challenge, the brokerage house said.
The current government is clearly focused on improving both safety and emissions standards to developed-market levels. This could mean that the cost of the vehicle would keep going up and hence affordability would not improve.Credit Suisse Research Note On Indian Passenger Vehicle Companies
New Launches
Perhaps the most surprising inclusion on the list of challengers is Renault-Nissan, but Credit Suisse expects the Carlos Ghosn-led alliance to offer stiff competition to Maruti, as it launches the new Renault Duster and Nissan HBC over the next one to two years. The alliance already sells its entry-level hatchback the Kwid in India.
New launches will also provide the much-needed support for sales, added the brokerage house.
Tata Motors could emerge as a dark horse as it has four new launches lined up over the next two years, said Credit Suisse.
Indian consumers are also shifting towards higher variants, added the brokerage house.