AutoAuto Yearbook FY20 April 30, 2020 Section I: Update – What went down? FY20 was a tough year for the entire Indian automotive industry. Myriad demand and supply side issues continued to trouble the space, continuing the system-wide weakness that set in around the 2018 festive period. Broad- based decline in OEM volumes (Exhibit 1) throughout the year encapsulated the pain at that level as well as the knock-on impact on supporting Report ecosystems of ancillaries, on the one hand, and dealerships, on the other. Higher cost incidence and general reluctance in consumer spending affected the PV and 2-W segments most, while slowing economic activity and system pecial overcapacity took a toll on CV segment. OEM focus on inventory destocking S in the run up to BS-VI switchover from April 2020 and Covid-19 outbreak were other issues that adversely impacted Q4FY20, in particular. Total industry volumes fell 14.8% YoY to 2.63 crore – one of the worst performances in decades, with all major segments registering hefty declines- PV - Down 14.8% YoY to 34.53 lakh units, was dragged by 19.9% dip in passenger cars and 39% decline in vans. UV sub segment, however, posted 2.7% growth courtesy several successful new Research Analysts product launches CV – Was hardest hit, down 29.7% YoY to 7.78 lakh units. M&HCV Shashank Kanodia, CFA
[email protected] sub segment dropped 43.3% amid persistent weakness in trucks (down 49.1%) while buses bucked the trend (up 3.5%). LCV sub Jaimin Desai
[email protected] segment came off by 20.7% with both – passenger and goods categories in the red 3-W – Was down 10.2% YoY to 11.39 lakh units amid double digit declines in passenger as well as goods categories 2-W – Was down 14.4% YoY to 2.1 crore units.