MUMBAI: The auto sector, which saw a revival last year after two years of turbulence, is set to continue the momentum this year with demand picking up across all segments, says a report.Growth of the auto industry is expected to continue in 2017 across all vehicle categories-commercial and passenger vehicles, as well as two and three-wheelers. But it is unlikely that the industry will maintain the sales growth of 2016 due to the note ban impact and the uncertainty regarding the GST , says Dun & Bradstreet in a report.The report, however, does not quantify its proejction.In 2016, auto sales grew 9.2 per cent driven by two- wheelers that moved up by 9.6 per cent from 0.7 per cent in 2015. At the same time, cars clipped at 7 per cent and commercial vehicles grew 7.8 per cent. Consequently, although the mid to long term prospects look positive, given the impact of demonetisation and the uncertainty regarding the GST the industry may not sustain the growth rates achieved in 2016. "The positive sentiment is driven primarily by the rural and semi-urban demand for two-wheelers and cars, driven on the back of good monsoons.

Source: Economic Times January 29, 2017 08:08 UTC