Consumer durables is a cataloguing of consumer goods that are not essential to be bought very often as they are fashioned in a way so as to last for an extended period of time. Profits in the consumer durables sector were most profoundly…
BMI View: Consumers will remain in a sweet spot of rising employment, low inflation, rising real wages
and low interest rates, which will encourage household spending on cars and motorcycles.
? Buoyant capital expenditure growth from the private sector and tax incentives will boost corporate
purchases of passenger cars and commercial vehicles for private fleets. Consumers will continue to
favour leasing arrangements over auto loans when purchasing new cars but the borrowing profile of those
choosing auto loans will continue improving.
? Driven by regulation changes, the powered-two wheeler segment will fall by 30.0% in 2016.
? Vehicle production to be buoyed over the next five years by improving export opportunities to Europe
and a new high-capacity light commercial vehicle plant coming online in October 2016.
? Passenger car production to lag behind commercial vehicle output growth as Fiat Chrysler Automobiles
holds off on utilising unused capacity at its Tychy plant.