Indian Automotive Sales to Stabilise During 2020: Moody's

Indian Automotive Sales to Stabilise During 2020: Moody’s

by Jyoti
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Moody’s Investors Service’s automotive manufacturing international outlook update stated auto gross sales might be comparatively flat after plunging 11.Eight per cent in 2019.

  • IANS
  • Last Updated: February 28, 2020, 8:53 AM IST
  • Edited by: Anirudh SK

Auto gross sales, which have been drastically impacted by the overall financial slowdown in India, are anticipated to stabilise throughout 2020, Moody’s Investors Service stated.

Moody’s Investors Service’s automotive manufacturing international outlook update stated auto gross sales might be comparatively flat after plunging 11.Eight per cent in 2019.

“We expect Indian auto sales to rise 0.5 per cent in 2020, supported by stimulus measures discounts on new cars that do not comply with ‘Bharat Stage VI’ (BS-VI) emission norms, which will take effect in April,” the update stated.

“But weak consumer demand and tight liquidity will likely limit any improvement in car sales this year. In 2021, we expect Indian car sales to rise 2 per cent.”

Overall, the update lowered the worldwide gross sales forecast because the coronavirus outbreak reduces demand and disrupts automotive provide chains.

“We expect global auto unit sales to decline 2.5 per cent in 2020, narrowing from a 4.6 per cent drop in 2019, but worsening from the 0.9 per cent decline that we had previously projected for this year,” the update stated.

“We expect sales to rebound only modestly in 2021, with a growth of 1.5 per cent. Our outlook on the sector remains negative.”

As per the update, the score company gave a forecast for international GDP development of two.four per cent in 2020 and a couple of.Eight per cent in 2021 assumes that the coronavirus outbreak will disrupt financial exercise within the first quarter.

“Under our forecast, the spread of the coronavirus will be contained by the end of the first quarter, allowing for the resumption of normal economic activity in second quarter,” the update stated.

“While China’s economy is by far the worst affected, the rest of the world is also exposed to short-term disruptions to supply chains. If the rate of infection does not abate and the death toll continues to rise, there is the potential for more severe disruptions in manufacturing supply chains, including in the automotive sector.”



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