Icra sees overall automotive volumes in FY21 being pushed back by 10 years

Rating agency expects GDP to decline by 11% in FY21; this will trickle down into lower demand for the automotive industry in general

A sequential recovery is underway across all segments of the automotive market, but this will not negate the possibility of a decline for the full year that ends on March 31, said Icra in a webinar on Wednesday. The Indian automotive industry is battling tough times due to a general economic slowdown coupled with Covid-19 induced pandemic lockdowns. T The fall in demand is also being reflected in capacity utilisation which is likely to dip below 45 per cent in FY2021, from 50-55 per cent in FY2020 for PVs and 36 percent for M&HCVs.  

The ratings agency expects the GDP