Auto Q1 preview: Tractor, two-wheeler companies may buck the slowdown trend

Analysts at Nirmal Bang Institutional Equities expect Maruti Suzuki to post a loss for the quarter under review, led by 80 per cent sequential sequential dip in volume and negative operating leverage

‘Forgetful’ is the word that analysts have unanimously chosen for the April-June, 2020 quarter for the automobile industry while writing the result preview notes. For the period marked by partial ‘unlocking’ of the economy, analysts on average, see decline in revenues up to 70 per cent year-on-year (YoY), while slump in sales volume could be as much as 80 per cent.

Auto and auto-ancillaries, barring tractor and two-wheeler players, lost more than half of the quarter’s sales due to Covid-19 lockdown. Gradual ramp-up in production due to supply chain challenges post unlocking further added to the lost sales, they say.

Analysts at