Hopes that January could see a revival in auto sales have crashed. The chart alongside shows that the trend of weak sales has continued in January, on the back of a dull festive season. FY19 year-to-date volume growth is in double-digits and looks decent, but the pace of growth is decelerating. Technological changes and liquidity issues among non-banking financial companies that were active channels of auto financing were additional headwinds. The weak wholesale numbers mirror high inventory levels with auto dealers, which reinforces the cautious outlook on the sector.

Source: Mint February 05, 2019 05:15 UTC