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Rewind 2018: High cost of fuel, finance dent auto sector's fortunes

The slowing sales had an impact on the Bombay Stock Exchange auto index

Shally Seth Mohile 

Representative image

After a robust first half, auto saw softening of sales from August, primarily due to high and cost of finance. Even steep discounts and attractive offers did little to attract buyers. As most are expected to increase prices from January, sales may come under further pressure.

The slowing sales had an impact on the auto index, which crashed 22 per cent during the year – the worst among all sectoral indices. However, benign raw material prices helped auto firms report a healthy earnings before interest, tax, depreciation and amortisation (Ebitda).


First Published: Tue, December 25 2018. 21:53 IST