Strong balance sheets may help maintain car makers credit quality: Crisil

Strong balance sheets and healthy liquidity position are expected to help maintain credit quality of most of the passenger vehicle (PV) makers stable despite the likely 25 per cent fall in sales for the segment in 2020-21, ratings agency Crisil said in a report Thursday.

As one of the many fallouts of the coronavirus pandemic on automobile industry, pre-owned vehicles and new small PVs may find increased preference in FY21, it said.

The agency had earlier said that PV sales, including exports, are expected to plunge by almost a quarter (22-25 per cent) in FY21 to a decadal low of