Nifty Auto hits three-year low. Analysts see more pain ahead

Thus far in the calendar year 2019, auto index slipped 21 per cent, against 5 per cent rise in the benchmark index

Falling sales, patchy monsoon thus far that may further have a bearing on demand going ahead and the overall slowdown in the economy has made analysts cautious on the consumption segment, especially the automobiles. And if reports are to be believed, the recovery in the auto segment is still far away.

In the first quarter of financial year 2019 – 20 (Q1FY20), automobile sales witnessed the sharpest decline of 10.5 per cent year on year (y-o-y) in the last five years on