It is going to be a weak quarter for the auto sector this time around because of multiple reasons. One, there has been a global semiconductor shortage that has hit production of OEMs, two - the demand has been quite weak, especially in the festive season, and especially in mass market segments like two-wheelers and the entry level car segment.

Also higher raw material prices have hit margins and continue to do so and there has been a very tepid recovery in the rural markets.

Watch the accompanying video of CNBC-TV18’s Sonia Shenoy for more

details.

Also Read: Expect weak 3rd quarter for auto sector, says Elara Capital

First Published:Jan 19, 2022 12:18 PM IST