Mumbai: According to a study conducted by global consulting firm Frost and Sullivan, the two-wheeler industry will be the fastest-growing segment of the Indian automobile industry.

The study said that of all personal transportation vehicles, the motorcycle segment will grow the fastest, followed by passenger cars.

Automotive sales in the country will get a boost from cuts in the excise duty, new model launches, higher disposable incomes and a changing consumer mindset. The Indian automotive market is now a buyers market and the general economic slowdown makes it imperative for industry participants to stay ahead of demand trends, said the firm.

The industry has seen the entry of a large number of international companies and new technologies, which have significantly altered the market dynamics. The increased number of market participants in the passenger car segment has given rise to excess capacities and forcing price competition, the study said.

The survey said for truck manufacturers the shift toward multi-axle vehicles is a positive trend, as these offer better operating economics than the single-axle and their higher cost means higher revenues for manufacturers.