With the lingering crisis in the auto sector, which has been going through the worst demand fall in two decades, the ancillary players are in for a bad times in FY21, says a report. Rating agency India Ratings has accordingly placed a negative outlook on the sector as it expects flat-to-low single-digit growth in auto volumes next year, after falling in double digits so far this fiscal year. Auto sales have plunged 16 per cent till January. Continuing weak sales amid unfavourable macroeconomic factors, uncertain regulatory environment, limited credit availability along with increased cost of ownership after BS-VI implementation do not offer any great greenshoots, it said in a report. “We expect subdued vehicle sales in the first half of FY21, after the BS-VI implementation, as consumers would take time to accept the revised pricing and a recovery only after the start of festive season,” says report.

(Economic Times)