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Expect weak 3rd quarter for auto sector, says Elara Capital
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Expect weak 3rd quarter for auto sector, says Elara Capital
Jan 19, 2022 3:24 AM

In our special segment, ‘Quarter Se Quarter Tak’, Jay Kale, Senior Vice President Research at Elara Capital, discusses the expectations from the auto sector in the third quarter.

Kale said, “We are expected to see quite a weak Q3, of course, marred by semiconductor shortage at the passenger vehicle and very weak festive season for the two-wheelers. Commercial Vehicles were the only positive because of a better mining and construction activity.”

He added, “I think a large part of the commodity pressures will be kind of seen in Q3 and that could be one of the last quarter before we see a recovery from Q4 levels. If we see a pickup in demand in Q4, which was expected a few days back until the third wave kind of hit. We are expecting that passenger vehicles should meaningfully improve in the fourth quarter and then in FY23. Two-wheelers will take a bit of time.”

For full interview, watch accompanying video...

Also Read: Auto Q3 earnings preview: Street expects weakness due to chip shortage, higher raw material prices

First Published:Jan 19, 2022 12:24 PM IST

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