almost all segments of the indian passenger vehicle market are set to see a decline of 1015 in fy21 with the lockdown suffocating discretionary purchases through the first half of the year mumbai covid19 could drag indias automotive industry back to a timeperiod when smartphones were workinprogress ipods rivalled iphones in sales and connected cars meant a roadside assistance helpline mechanism that workedfrom 34 million units at its fy19 peak the car industry could shrink by a million to 24 million units twowheeler sales could plunge by 5 million units at the end of fy21 from its peak of 21 million to an estimated 15516 million forecasts by crisil rating icra ratings ihs markit and jato dynamics showed advt almost all segments of the indian passenger vehicle market are set to see a decline of 1015 in fy21 with the lockdown suffocating discretionary purchases through the first half of the year hetal gandhi director crisil research told et that the auto sector could be pulled back anywhere between 3 and 10 years depending on the segment segments like cars and uvs as well as commercial vehicles could reach sales levels of fy11 while twowheelers could reach the sales levels of fy15the automobile industry was hit hard in fy20 as sales fell across vehicle segments the outbreak has cast a shadow over a muchanticipated mild recovery in the indian economy in fy21 we expect q1fy21 to be significantly impacted from both supply side as well as demand side due to plant shutdowns as well as subsequent lower demand as people tackle the pandemic added gandhihistorically it has been seen in several countries that premiumisation led personal mobility growth typically pick up after per capita income breaches 2800level mark indias per capita income is estimated to be 2143 at the end of march 2020 as gdp growth drops to a multiyear low in fy21 the per capita expansion will be slower than earlier projections crimping marginswithin automobile segments commercial vehicle industry which was hit the hardest in fy20 would be the worst hit in fy21 the nationwide lockdown has hit freight demand and transporters are expected to see a significant drop in their income lower private consumption and availability of redistribution freight will hit demand for light commercial vehicles as well advt the governments ability to push infrastructure and even fund bus purchases is constrainedin twowheelers demand from rural areas is expected to be better than urban markets due to better rabi prospectsread alsodomestic auto sales may drop up to 25 this fiscal mg motor indiacoronavirus lockdown auto plants await state government nod by ketan thakkar ashutosh r shyam et bureau published on apr 20 2020 at 0759 am ist telegram facebook copy link be the first one to comment comment now comments comment now read comment 1 all comments post post find this comment offensive choose your reason below and click on the submit button this will alert our moderators to take actions reasons for reporting foul language defamatory