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January auto sales: The New Year started with no fireworks

February 04, 2020 / 06:16 PM IST

Highlights
- Disappointing auto numbers in major segments
- Slowdown, axle load norms, tight liquidity and non-availability of finance weigh on CVs
- Three-wheelers gained traction
- Passenger cars did relatively well
- Two-wheelers moved from one bump to another --------------------------------------------------

The auto sector, especially the commercial vehicle (CV) segment, continues to lose steam. There seems to be no respite due to a weak macro environment and a tough regulatory framework.

Auto majors, however, have seen some recovery in passenger vehicles (PVs) and three-wheelers (3Ws).

Pre-buying ahead of BS VI implementation is a big catalyst for the sector. Additionally, higher reservoir levels, adequate soil moisture conditions and expectations of a good Rabi crop are all expected to augur well for tractor and two-wheeler (2W) demand in the next few months.