Car sales in India are expected to be relatively flat this year after plunging 11.8 per cent in 2019 amid slowing economic growth, as per Moody’s Investors Service.
The rating agency also lowered its global sales forecast as the coronavirus outbreak reduces demand and disrupts automotive supply chains.
“We expect Indian auto sales to rise 0.5 per cent in 2020, supported by stimulus measures, discounts on new cars that do not comply with Bharat Stage VI (BS VI) emission norms, which will take effect in April,” the ratings agency said in a statement.
But weak consumer demand and tight liquidity will likely limit any improvement in car sales this year, it added.
“In 2021, we expect Indian car sales to rise 2 per cent,” Moody’s Investors Service said.
Commenting on global auto sales, it said, “We expect global auto unit sales to decline 2.5 per cent in 2020, narrowing from a 4.6 per cent drop in 2019, but worsening from the 0.9 per cent decline that we had previously projected for this year.”
The ratings agency expects sales to rebound only modestly in 2021 with growth of 1.5