American credit rating agency Moody’s in its latest forecast has said it expects the automobile sales to witness stable growth on the back of stimulus measures like discounts for new cars which do not conform to BS VI emission norms.
Moody’s Investor Service has predicted that car sales could be flat this year after plunging to a low 11.8 per cent in 2019 amidst slowing economic growth. The outbreak of coronavirus has also dented auto sales in the near term with auto supply chains undergoing disruptions.
In its press statement, Moody’s said, “We expect Indian auto sales to rise 0.5 per cent in 2020, supported by stimulus measures, discounts on new cars that do not comply with Bharat Stage 6 (BS 6) emission norms, which will take effect in April.”
Weak consumer sentiments and availability of cash in hand had put pressure on auto companies to garner sales in the last year. Car sales could increase by 2 per cent by 2021, the rating agency said in its statement.
