Mr. Mukhtyar said that the MPV segment, after seeing growth for a few years, is expected to decline by 9 per cent year-on-year to 90,000 units, as customers experience model fatigue.
"There is also likely to be an expanded scope and incentives for green cars in the revised NAP to include low emission conventional combustion engine cars and other alternate fuel vehicles and also incentives to promote local assembly of Energy Efficient Vehicles vis-a-vis import of completely built-ups (CBUs)," he added.
2012 Vehicle Sales Review
Frost & Sullivan expects vehicle sales in 2012 to end at 618,000 units, growing 3.0 per cent year-on-year due to pent up demand, normalization in the automotive parts supply chain and launch of several new models such as the Preve, Civic and Camry."2012 saw the automotive industry bouncing back despite a weak start to the year due to tightening of lending guidelines, supply chain disruptions from the flood in Thailand and uncertainty revolving the budget and NAP in the later part of the year," said Mr. Mukhtyar. He added that passenger cars are likely to end marginally higher at 543,400 units in 2012, growing at 1.5 per cent year-on-year. "Though the C-segment continues to be the largest, growth has mainly come from B-segment and MPVs. A-segment shrunk further in 2012," he added. Mr. Mukhtyar said that growth of B-segment, at 6.4 per cent year-on-year in 2012, were driven by customer migration from the A-segment due to limited model offerings. He added that hybrid cars and new model launches contributed to growth in the C-segment in 2012, which is likely to grow 1.6 per cent year-on-year in 2012. Meanwhile, the launch of the new 7 th generation Toyota Camry drove growth in the D-segment, at 1.7 per cent year-on-year. Mr. Mukhtyar said that the MPV segment likely grew 4.2 per cent year-on-year due to new model launches such as the Nissan Grand Livina X-Gear, Proton Exora Bold and Prime.