Downgrade cycle for auto firms to continue\, more concerns likely to follow

Downgrade cycle for auto firms to continue, more concerns likely to follow

The passenger vehicles market - particularly the volume-heavy entry- to mid-market segments - tends to be sensitive to fuel cost prices

Hamsini Karthik  |  New Delhi 

The BSE Auto index has been among the worst performers, losing 21 per cent in 2018. Given the multiple factors such as lack of new models, higher cost of financing, aggressive pricing and increased discounting across segments, analysts expect the sector to disappoint on the returns front for the second consecutive year.

ALSO READ: India's auto sector may attract $8-bn investments by 2023: Govt Brokerages have started downgrading firms across segments, be it two-wheelers, passenger vehicles or truck makers. Recently, CLSA downgraded the Eicher stock, cutting its earnings ...

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First Published: Thu, January 10 2019. 01:36 IST