After a robust first half, auto companies saw softening of sales from August, primarily due to high fuel prices and cost of finance. Even steep discounts and attractive offers did little to attract buyers. As most companies are expected to increase prices from January, sales may come under further pressure.
The slowing sales had an impact on the Bombay Stock Exchange 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).