The Nifty Auto index nosedived 7.2% on Monday following reports of zero sales by automakers in April because of the nationwide lockdown.
A partial relaxation of the lockdown in notified covid-19 zones from Monday is also unlikely to fuel near-term demand. The resultant weak June quarter (Q1 FY21) combined with a wobbly recovery thereafter would lead to a washout for auto sales in FY21, say analysts. “We expect 1QFY21 year-on-year (yoy) contraction of 74%-77% for passenger vehicles (PVs), two-wheelers, three-wheelers and commercial vehicles," said BNP Paribas Securities India Pvt.
Ltd in a report. There could be a sequential recovery led by pent-up demand in the remaining quarters, but it may be offset by the BS-VI price hike impact, it