up to 15 per cent more for diesel variants are likely to weigh on demand fitch addedbsvi transition is likely to push prices for twowheelers higher by up to 10 percent which will dampen demand recovery especially in rural areas where the availability of vehicle financing is still weak it addedincreased cost weak demand and intense competition can also squeeze automakers profitability although they appear to be taking a disciplined pricing approach so farwe believe the oems focus on reducing inventory reflected in output cuts in recent quarters will mitigate the risk of unsold inventory that does not comply with the new emission standard the report saidruling out major impact of the coronavirus outbreak on domestic companies fitch said oems source only 1015 per cent of their components from china mainly electronic components and typically keep around 30 days of imported inventorybesides they have built some buffer in anticipation of the planned closures during the chinese new year holidays but if shortages last beyond february production disruption can happen and lead to higher costs it said pti published on feb 19 2020 at 0845 pm 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 inciting hatred against a certain community out of context spam others report join the community of 2m industry professionals subscribe to our newsletter to get latest insights analysis download etauto app get realtime updates save your favourite articles scan to download app auto sector outlook auto slowdown coronavirus fitch auto sales homenewsindustryno end in sight for auto slump says fitch