New Delhi, Sept. 10 -- Competition in India's passenger vehicle () segment is likely to remain elevated over the next four to five years, while the two-wheeler (2W) market is expected to retain a more disciplined competitive environment, creating a widening divergence in profitability across the automobile sector, according to a research report by Jefferies.

The global brokerage firm said the PV industry is heading into an intense product cycle, with the top four manufacturers collectively planning around 35 new nameplates over the next four to five years. A sustained flow of new models, particularly in SUVs, is likely to keep pricing and competitive pressures high even as demand remains healthy.

Jefferies said the contrasting competiti...