Auto sector to begin FY17 with subdued Q1

Subdued demand and rise in commodity costs hit the sector

Pune is home to assembling units of various automobile players

The automotive sector will kick off the new financial year with weak first-quarter earnings, hit by subdued demand and rise in commodity costs. Barring a few companies earnings for most others will be disappointing. With the exception of utility vehicles, three-wheelers and scooters, all other segments reported moderating to negative sales trends during the first quarter ended June. Passenger cars reported a fall of 1.4 per cent to 475,000 units. Growth of medium and heavy commercial vehicles came down 14.5 per cent to 71,000, less than half the growth reported by the segment ...