While the latest report by RBS expects the cars to still see high volume growth, but lower profitability in the coming times, it believes that the two-wheelers sector will see the most profitable growth and expects CVs to be threatened by new entrants in the industry.

As the ownership of products is getting expensive by the for the end consumer riding on the back of factors like the rise in fuel prices, interest rates and product price, it is believed that the passenger carmakers will feel the heat as far as the profitability is concerned but the volumes will keep rising in the coming months.

The report further highlighted the fact that aggressive product pricing by new compact car entrants, like VW, Ford, Nissan and incumbent Maruti will keep the flag flying high in the domestic passenger car market but there is a price war expected to happen in the small car segment.

Notably, after GM and Ford accessed their low pricing strategies with the Beat and Figo respectively, market leader Maruti Suzuki gave a shock to the competition by pricing at the lowest level in the segment.