NEW DELHI: Indian automobile industry has witnessed 1.33 percent growth in its domestic sales for the month of March 2017 and stood at 1,880,352 units, according to data released by Society of Indian Automobile Manufacturers SIAM ).The passenger vehicle segment sold 282,519 units as against 256,920 units during March 2016, thereby registering growth of 9.96 percent. In this segment, while passenger cars grew by 8.17 percent, sales of utility vehicles jumped 20.91 percent.Passenger cars sold 190,065 units, and utility vehicles' sales touched 77,689 units during March 2017. Vans witnessed 12.94 percent de-growth at 14,765 units when compared with 16,960 units during March 2016.The commercial vehicle segment grew by 9.26 percent at 87,257 units. Medium & heavy commercial vehicles grew by 5.97 percent, and light commercial vehicles went up by 12.11 percent. In the domestic market, they sold 39,353 units and 47,904 units, respectively.The two wheelers segment registered marginal growth of 0.26 percent, at 1,471,576 units. In this segment, only scooters' sales witnessed positive growth of 8.13 percent at 486,604 units. Motorcycles and mopeds sales went down by 3.33 percent and 1.61 percent at 915,199 units and 69,773 units, respectively.Total three wheelers sales decreased 23.72 percent at 39,000 units.Coming to the exports front, Indian automobile industry exported 304,704 units during the month of March 2017 and experienced growth of 13.59 percent.During March 2017, total passenger vehicle exported stood at 71,556 units as against 62,010 units, thereby growing by 15.39 percent. Commercial vehicle exports recorded year-on-year decline of 12.32 percent at 9,244 units.Two wheeler exports grew by 18.97 percent with maximum growth of 72.84 percent recorded by mopeds. Three wheelers segment exported 16,944 units when compared with 21,609 units during March 2016.The new fiscal 2017-18 augurs bright for the Indian automotive sector. Lower borrowing costs due to pent up demand on the back of demonetisation, a mild budgetary support to incomes to drive consumption growth in FY’18 as well as a GDP growth of 7.4 percent will give a fillip to demand in the automotive sector.In addition, normal monsoons leading to a good food grain season of both the kharif and rabi crops, as well industrial growth to 6.8 percent up from 5.8 percent in FY’17 will put more disposable income in the hands of consumers, according to SIAM.Higher domestic demand will put to use spare capacity in sectors such as cement, steel and consumer durables which will spur industrial investment and the services sector will grow by 8.6 percent compared to 8.0 percent in the previous fiscal. So overall a conducive environment to boost overall growth of the industry though rising global oil and commodity prices may through a spanner in the works.Passenger vehicle sales are expected to experience demand growth due to better pay commission payouts and a better rabi crop. However cost of ownership is expected to rise by 4-6 percent of petrol and diesel cars due to rising raw material costs. Oil prices are also expected to remain high that will negatively impact sales.Interestingly cars will see more new model launches compared to utility vehicles. More production capacity will also be added at carmakers end to reduce waiting periods and to boost demand with the passenger vehicle segment growing between 7-9 percent.In the two-wheeler segment, motorcycles are expected to grow moderately. Demand in the economy and executive sub-segments will revive gradually as more cash flows into the economy. A good rabi crop will also improve the rural demand and give a boost to sales.Scooters will continue to grow in double digits with two-wheelers growing between 9-11 percent in FY’18. The ban on BS-III vehicles will push up inventory of BS-IV at dealerships and pep up sales. Further with more women joining the urban workforce scooters are likely to climb northwards.However, medium and heavy commercial vehicle goods segment is expected to witness a weak demand due to low replacement demand in Q1 FY18 due to a shift to BS-IV emission norms. Some customers pre-poned their purchases in Q4 of FY17 due to this reason. GST fears surrounding the rates that will apply on this segment are also very real. Hence transporters are unsure about the type of demand that they will have to serve.Meanwhile, the three-wheeler segment will grow in a low single digit. Rising urbanization and migration to cities will give a fillip to intra city transportation. Three wheeler manufacturers have been trying to push further into rural areas as SCV makers try to encroach on the traditional three-wheeler market. This will give a fillip to demand with the segment pitted to grow between 4-6 percent.