Categories: Business

fitch sees india auto demand to fall over 20 percent in 2020-21

Photo: PTI

fitch sees india auto demand to fall over 20 percent in 2020-21

new Delhi. International ratings agency Fitch expects domestic vehicle demand to fall by more than 20 percent in the current financial year. The reason for this is not only the Covid-19 crisis facing the automobile industry, but also the challenges faced by others. Fitch says vehicle demand improved slightly in July after relief from lockdown regulations. But the problems faced by the vehicle industry remain the same. "There will be many challenges facing domestic vehicle demand," Fitch said in a report on Tuesday. We estimate the overall automobile industry to decline by more than 20 percent by number in the current financial year. If the impact of the Kovid-19 pandemic is worse, it may see further deterioration. "Sales of BS-6 emission standard vehicles have been made mandatory in the country since April this year. This has increased the cost of vehicles. The market crisis has been exacerbated by the Kovid-19 epidemic.

However, the report said that the use of private vehicles has increased due to health security among the people. But due to the price rise Corona crisis, there may be pressure on demand due to many reasons like extra vigilance of banks and finance companies about auto loans and impact on people's income.

Passenger vehicle sales increased 73 percent in July compared to June after a record decline in sales in the first quarter. At the same time, two-wheeler sales grew by 26 percent. This increase in sales was recorded due to a lockdown exemption. With this, the utility vehicle registered a growth of 14 per cent over the previous year. On the other hand, the demand for commercial vehicles continues to decline.

This post was published on August 18, 2020 11:39 pm

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