The India Meteorological Department (IMD) has forecast a normal monsoon in 2018, with rainfall likely to be 97% of the long-term average. Speaking about the IMD’s monsoon forecast, Sumit Sawhney, Country CEO and Managing Director, Renault India Operations said that a good monsoon is crucial to boost rural demand. The boost in rural demand will aid in generating higher income for farmers which will augur well for the entry-level car segment.
Sawhney said, “From the macro-economic standpoint, a good monsoon is important to address inflation and boost rural demand which will provide an impetus in growing the rural economy and generating higher income for farmers. This should augur well for the automotive industry, especially the entry-level car segment which has been witnessing degrowth.”
With favourable monsoon prediction, Renault India is expecting a rise in demand from the rural market.
“Over the last few years, we have focussed on growing our network presence in the Tier II & Tier III markets and with a favourable monsoon prediction, we are expecting an uptick in demand from the rural market,” Sawhney further added.