The auto sector is jubilant over the government's new scrappage policy, which was announced by Nirmala Sitharaman during the presentation of the Budget. Some, however, say more work needs to be done.
Nishant Arya, executive director, JBM Group, tells Fortune India that while Covid-19 has hit commercial vehicles, demand will pick up and there will be a shift towards cleaner engines.
The ratings agency said that the passenger vehicle segment's FY21 volumes are expected to see a drop, as it is tied to GDP and overall consumer sentiment, both of which are at historic lows.
The investment was led by Inventus Capital India, along with Blume Ventures, US-based Emergent Ventures, Singapore-based Jetty Ventures, and Udaan’s co-founder Sujeet Kumar.
Vinod Aggarwal, MD and CEO, Volvo Eicher Commercial Vehicles, speaks about its BS VI readiness, the tech advances in the commercial vehicle segment, and the slowdown crippling the auto industry.
India Ratings and Research says demand for these vehicles will take a hit in the near term.
Total industry sales, however, fell nearly 13%, according to SIAM data.
Rise in exports and lower tax outgo help the Pune-based motorcycle maker in the September quarter even as sales continue to suffer due to subdued demand.
Data released by SIAM on Wednesday shows that passenger cars sales fell to 122,956 units from 191,979 a year ago due to muted consumer sentiment.
Overall sales of the auto industry, which has been facing headwinds for more than a year, fell 12.34% to 1,997,952 units in June from 2,279,186 units a year ago.
