ICICI Direct: Auto OEMs - Seminal Year For Industry Provides Interesting Insights

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Direct Report.FY20 was eventful for the Indian auto industry largely dominated by degrowth in volumes tracking muted consumer sentiment, switchover to BS-VI regime, thrust on electrification, impressive product launches in resilient utility vehicle segment including new foreign original equipment manufacturers (OEMs).Total industry volumes de-grew 14.8% YoY to 2.63 crore units (domestic down 18% to 2.16 crore units, exports up 3% to 47.66 lakh units), making it the worst yearly performance in the past decade.The decline was broad-based, with two-wheeler, passenger vehicle, three-wheeler down 14.4% (2.09 crore units), 14.8% (to 34.52 lakh units), 10.2% (to 11.39 lakh units), respectively.Commercial vehicles fared worst, down 29.7% YoY to 7.78 lakh units.However, amid all the gloom, the engineering and production prowess of the industry (along with its value chain) shone brightly as it successfully completed the world’s fastest switchover to Euro 6 equivalent emission norms i.e. BS-VI as per schedule.Much of the post festive period was focused on the transition, with the entire ecosystem estimated to have spent approximately Rs 70,000 crore towards the technological leap..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

ICICI Direct: Auto OEMs - Seminal Year For Industry Provides Interesting Insights

Amid the gloom, the engineering and production prowess of India’s auto industry shone through in the switchover to Euro VI norms.

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