ICICI Securities: Auto And Auto Ancillary Days 2020 - Key Takeaways From The Conference
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ICICI Securities Report
We hosted 28 corporates and experts across the automotive sector in a virtual conference over August 13-14. We hosted 110 institutions and in excess of 800 meetings.
This report (Part-1) will cover the feedback provided by various corporates on underlying business trends. The expert summary (Part-2) would be published subsequently. We look forward to hosting you again next year.
Key CIO summary:
1) Production issues persist as supply chain is yet to attain normalcy; most auto companies are still operating at 70-80% of pre-Covid-19 levels;
2) Channel inventory at 30-35 days; likely push on sales to prepare for festive season;
3) Consumer preferences – downtrading visible in two-wheelers and four-wheelers as focus remains on limiting wallet spends;
4) Tightening of financing norms (e.g. loan to values, rejection rates) affected in almost all sectors with tractors being the least affected whereas three-wheelers being the most affected; these conditions not affecting customers who have not availed moratorium.
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