Price hikes to dampen recovery prospects for Indian automakers: Fitch

Hikes come at a time when boost in some categories from pent-up demand and festive spending fades, and the economic impact from the pandemic reasserts itself, rating agency says

Indian automakers' plans to pass on higher commodity prices to customers will dim the prospects for a demand recovery after December 2020. The hikes come at a time when the boost in some categories from pent-up demand and festive spending fades, and the economic impact from the coronavirus pandemic reasserts itself, Fitch Ratings said.

Pent-up demand after the gradual easing in the government's lockdown helped India's monthly wholesale volume of passenger vehicles (PV) return to growth after July 2020. PV wholesale volumes rose by 13 per cent YoY in the quarter ended September 2020, Society of Indian Automobile Manufacturers data showed.

Festive