The domestic auto components industry may see a revenue growth of 15-17 % this fiscal and 10-12% in the next financial year on the back of recovery in automobile sales, according to a report.

Rating agency Icra revised downwards the revenue growth forecast for the auto components industry in the current fiscal to 15-17 percent.

ICRA warns of chip shortages, slow vaccination roll-out in some regions, logistics challenges and further lockdowns/curfews. The recovery of the Indian market will be slower compared to Europe or North America.

Rajasthan became the 16th state in India to roll out an EV policy. The incentives include a refund of state GST amounting to 2.5% of the vehicle cost and a one-time incentive based on the battery capacity.

On a YoY basis, wholesale of two-wheelers grew by just 4%, but PV dispatches improved by 119%. Compared to Q1FY19, the demand and sales of tractors have not been affected by the pandemic.

As per ICRA, India can work on electrifying its two-and three-wheeler segment. This segment is favourable for the benefits of economies of scale due to the huge volume and total cost of ownership.

The domestic CV industry ended FY 2018 on a strong note, witnessing a growth of 20 per cent in volume terms over the prior year.

The domestic commercial vehicles (CV) industry is expected to grow in the range of 9-11 per cent in FY 2019 supported by the pickup in infrastructure projects, improved industrial activity, healthy demand from consumption-led sectors, etc, says ICRA report.

Shamsher Dewan in this report provides insights into the proposed BS-VI emission norms and its likely impact on technology along with vehicle pricing going forward. The report also summarises the change in technology that petrol & diesel vehicles have seen across various emission standards along with pros & cons of available technologies.