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India's lagging automobile stocks face risk of festival season fizzle

Below-normal monsoon rains that have impacted rural demand and the risk of an impending third coronavirus wave are posing a challenge for Indian vehicle makers

Automobile, cars, sales, demand
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A gauge of Indian automobile shares has lost 2.5% so far this quarter, the only loser among the BSE Ltd.’s 19 sector groups | Photo: Bloomberg

Ashutosh Joshi and Akshay Chinchalkar | Bloomberg
Investors counting on India’s upcoming festival season to help revive the fortunes of the nation’s automobile stocks could be in for a disappointment.
 
Below-normal monsoon rains that have impacted rural demand and the risk of an impending third coronavirus wave are posing a challenge for Indian vehicle makers. That’s in addition to the problems of rising input costs and a semiconductor shortage the global auto industry is faced with.

A gauge of Indian automobile shares has lost 2.5% so far this quarter, the only loser among the BSE Ltd.’s 19 sector groups. The benchmark S&P BSE Sensex has rallied 12%

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First Published: Sep 16 2021 | 9:04 AM IST

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