Mumbai: It is set to be a long haul for the auto sector that has already been riding through its worst slump in two decades, with demand, that has so far plunged 16 per cent, unlikely to pick up even next year, according to a report.
The 3 million-plus-units domestic auto industry has seen volume plunging over 16 per cent as of December-end 2019, with some of the segments performing even worse.
Despite the nearly two-year crisis, the past two Union Budgets have given little respite to the sector that is very critical to generate employment. Instead, lakhs of jobs have already been lost in the industry, including its allied segments, since the past 18 months or so.
Expecting very low pick-up in volumes given the lingering growth pangs of the overall economy and other macroeconomic headwinds, India Ratings has revised downwards its outlook on the sector to negative for 2020-21 from stable, as it expects “flat-to-low pick up in volume in FY21”.
