Auto Slowdown: Two-wheeler OEMs to face another phase of margin headwinds, says CLSA
Updated : September 20, 2019 09:55 AM IST
Two-wheeler OEMs may find it difficult to pass on the full cost impact of the upcoming BS6 emission norms amid weak demand and high competition.
According to the brokerage house, above-average rainfall in 2019 offers some hope, but subdued agriculture commodity prices and a high base after two years of strong growth in rural 2Ws are likely to limit the benefits.
Largely the brokerage held a cautious view on Indian 2Ws due to concerns of slower growth and higher competition, but also saw few reasons to turn constructive.