Road ahead for auto industry: Economic recovery holds key to revival

Cautious optimism rules four-wheeler mindset, pain seen lingering in two-wheeler segment

If there is one year that India’s manufacturing sector, particularly the automobile industry, could wipe off the calendar, it would well be the year 2020.

Earlier this month, S&P Global Ratings raised India's growth projection for the current financial year to (-) 7.7 per cent from (-) 9 per cent estimated earlier on rising demand and falling Cobid-19 rates. For the next financial year 2021-22, S&P projected growth to rebound to 10 per cent.

A broad-based rebound in 2021 hinges on the overall economic growth which, in turn, will fuel consumption said officials at auto firms.  

R C Bhargava, chairman,