Not to expect too much from the auto sector because the demand has been subdued, as well as the semiconductor shortage has hit the production quite a bit. Therefore, it is expected to be a bit of a washout this time around.

Mass segments like entry-level cars and two-wheelers have been hit quite a bit. In fact, in the two-wheeler space inventory levels are very high, about 6-7 weeks. High vehicle prices and the surge in electric vehicle adoption has hit segments like scooters quite a bit.

Companies like Hero Motocorp indicated further price hikes in 2022 in order to pass on the higher raw material costs, so that could put further pressure on-demand as well.

Also Read: Rewind 2021 | Year of speed bumps for the auto industry

The only bright spot has been the medium and heavy commercial vehicle space because freight rates have improved and demand has picked up, but now because of the Omicron variant perhaps there could be some petering off there as well.

Also Read: Rewind 2021 | Semiconductor shortage and how it impacted the Indian auto sector

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