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Dismal auto results, may be the same next quarter according to IndiaNivesh

Except for Eicher’s Royal Enfield, Tata’s Tiago and few models of Maruti (Breeza, S-Cross & Baleno) which have long waiting periods, all the companies suffered the continuing short term liquidity crunch on account of demonetization.

, ET Bureau|
Updated: Jan 16, 2017, 08.14 PM IST
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An IndiaNivesh Securities report said a sharp de-growth was seen across the auto sector in the last quarter in all companies manufacturing two-wheelers, three-wheelers, LCV, MHCV all witnessing double digit de-growth.

It said the fourth quarter would also witness similar de-growth led by the weak commentary given by the managements of some of the auto majors,” The revival in earnings can trigger only from government spending… Sops from the budget, passing of the GST bill before September 2017, introduction of GAAR and other anti-avoidance agreements are the key things to watch out for,” it said.

Except for Eicher’s Royal Enfield, Tata’s Tiago and few models of Maruti (Breeza, S-Cross & Baleno) which have long waiting periods, all the companies suffered the continuing short term liquidity crunch on account of demonetization, it said.

In the Passenger car segment, sales of Maruti Suzuki for the quarter grew 3% year-on-year but UV & Vans segment sales were up 33% year-on-year mainly on account of strong sales led by Vitara Breeza and S-Cross, the report said. Mahindra & Mahindra’s passenger vehicle sales in the same period were down by 12% year-on-year while those of Tata Motors recorded 29% year-on-year growth fueled by sales of Tiago, it said.

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