Car companies expect single-digit growth in FY21

Date posted: Monday 10 February 2020

Maruti Suzuki, Hyundai Motor and Mahindra & Mahindra, the nation’s top three passenger vehicle makers, expect the automobile market to grow in low single digits in fiscal 2021, after a slow start to the year. A favourable base to compare with after a steep fall in sales this year, low interest rates and new rules that give the taxpayer an option to choose lower I-T rates are among the key reasons driving their estimates. But they expect sales in the first two quarters to be flat or even fall marginally, owing to pricier BS-VI models. Their optimism, though, isn’t shared by two-wheeler and commercial vehicle makers, where industry executives predict the market to remain in the negative zone because the price hikes after BS-VI rollout in April are going to be steep at 10-15%.

(Economic Times)

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