India Ratings and Research agency (Ind-Ra) has maintained a stable outlook on the auto sector for the financial year, despite an expected slowdown in the commercial vehicle segment. The slowdown in the commercial vehicle segment is expected to be on account of a nine to 12 per cent decline in Medium and Heavy Commercial Vehicles (MHCVs), partially offset by a six-to-nine per cent growth in Light Commercial Vehicles (LCVs). The volatile Index of Industrial Production (IIP) trend, along with the depletion of replacement demand is expected to lead the decline in MHCV volumes in FY2017-18. However, LCV volumes are likely to witness demand owing to the last mile transportation requirements triggered by a surge in online retail sales. According to the report, the implementation of the Goods and Services Tax (GST) is also expected to benefit the auto industry.