Wholesales of passenger vehicles will decline by 10-12% in FY 21, due to the adverse impact of the Covid 19 pandemic on the economy, according to credit ratings agency ICRA.
Vehicle manufacturers had to shut factories for several days to comply with government directives aimed at curbing the spread of pandemic.
The automobile industry has been battling headwinds like credit crunch in financial institutions and decline in consumption demand over the last year and half, which led to significant decline in sales across categories.
The outbreak of the pandemic, which coincided with the transition to BS 6 norms, will further prolong the recovery process for the sector.
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