SEBI Reg. Investment Advisor

Download App
Help Center Pricing
Money Works 4 Me Logo MoneyWorks4Me
Login Get Free Account
Sign Up

MoneyWorks4Me

Log In Sign Up Schedule Free 15‑min Call
Login Get Free Account
Sign Up
  1. Home
  2. Stock Market News
  3. Care Ratings revises automobile sales growth outlook to 5-7% for FY20

Care Ratings revises automobile sales growth outlook to 5-7% for FY20

16 Sep 2019 Evaluate

Care Ratings in its latest report has revised its outlook for overall automobile sales (excluding tractors) to 5-7 percent for the current financial year (FY20), on the back of factors like higher vehicle prices, financing issues and higher insurance cost among others. It has revised its outlook after industry volume witnessed sharpest decline at 13.3 percent in April-August period from a double-digit growth of 14.5% registered in the same period last year, amidst weak consumer sentiments and rising ownership costs.

According to the report, the decline in sales in FY20 was led by a 15-20 percent price hikes due to new safety norms, higher insurance and ownership costs, liquidity crisis in the NBFC sector and increased load carrying capacity for medium and heavy commercial vehicles that led to high inventories causing slow movement in movement of vehicles. However, it said in August, the sales of passenger cars and three wheelers have witnessed growth of about 1.8 percent and 9 percent, respectively, on month-on-month basis, while the decline in sales of commercial vehicles and two wheelers have narrowed down to 7.4 percent and 0.3 percent month-on-month, respectively, as against a fall of 17.5 percent and 6.6 percent during the previous month.

Care Ratings further said that the sales growth during the period was largely restricted on account of weak demand for commercial vehicles and passenger vehicles registering a double-digit decline of 21.5 percent and 18.8 percent y-o-y while decline in sales of two and three wheelers segment was restricted to 12.2 percent during the month. Going forward, it expects demand to continue to remain muted during Q2 FY20 and pick up only by Q3 FY20 and continue in Q4 FY20 with various planned product launches, festival demand and pre-buying of automobiles before the implementation of BS-VI norms from April 1, 2020.

Register Now to get our Free Newsletter & much more!
2026 ©The Alchemists Ark Pvt. Ltd. All rights reserved. MoneyWorks4Me® is a registered trademark of The Alchemists Ark Pvt. Ltd.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×