India’s 2020 auto sales to decline by 30%: Moody’s

Auto unit sales will decline at least 30 per cent in 2020, following a decline of over 40 per cent in the seven months through July. 

   
auto sales fada

India’s auto sector is expected to face challenges this year, with the country’s economy predicted to contract in 2020 amid the pandemic, said Moody’s Investors Service. 

According to it, auto unit sales will decline at least 30 per cent in 2020, following a decline of over 40 per cent in the seven months through July. 

“The lower annual decline reflects our expectation of a pickup in economic activity during the remainder of 2020, which also includes the festive period – October through December,” the Moody’s Investors Service said in a report.

“A second wave of infections and extension of lockdowns cast a shadow of risk on these forecasts. Also, tighter lending criteria could limit liquidity available for consumers and auto dealers.”

As per the report, looking ahead, unit sales will likely grow around 20 per cent in 2021, though clearly on a lower base.

“Moreover it will take at least another four years for India’s unit sales to recover to pre-pandemic levels,” the report said.