Suman Chowdhury, Chief Analytical Officer, Acuité Ratings & Research
"The factory despatch volumes of the bellwether of Indian automobile industry, Maruti Suzuki are encouraging with only a slight contraction of 1.1% in July 2020 as compared to the previous July and a sharp 88.2% pickup over June. Similar trend is seen for Hyundai India where the yoy contraction figure is only to the extent of 2.0%, translating to a month-on-month uptick of 54%. While the growth figures are partly a play of the base effect, there is a significant undercurrent of recovery in the domestic automobile sector driven by the increased need for personal mobility, particularly given the increased risk as well as continuing unavailability of public transportation mechanisms in the wake of Covid-19. We believe that a healthy growth in the agricultural sector where the impact of the pandemic has been hitherto limited, has also led to better demand accruing from the semi-urban and the rural areas. This should also get reflected in the two wheeler and the tractor volumes of July 2020."