ICRA Comments on auto sales data

Comments by Shamsher Dewan – Vice President, ICRA Ltd

A strong performance by 2W OEMs in September 2020 likely reflects the channel filling before the upcoming festive season. As per Vahan portal the 2W retail offtake was lower by 20.8% on YoY basis in September 2020, likely due to the inauspicious period of Shradh and Adhik Maas. It is expected that a low base, upbeat rural sentiments and increased preference for personal mobility would support retail demand in the festive season. Nonetheless, the uncertainty surrounding the pandemic persists and recovery is expected to be gradual at best.