Global research and brokerage firm Nomura on Friday said it expects August retail auto sales to slide on weak demand after declining retails and high inventory levels have kept wholesale numbers muted.
According to Nomura, recent steps taken by the government may not drive meaningful improvement in demand and the GST cut from 28 to 18 percent remains the most important thing to revive demand.
Nomura said volumes for the passenger vehicle segment in FY20 are estimated to decline by 5 percent, while that for medium and heavy commercial vehicles by 15 percent. The decline would be around one percent for two-wheelers, it said.
Sales expectations for individual companies:
Total sales for the month of August are expected to fall by 32.6 percent because of weak retail demand.
Total sales are expected to fall by 35 percent because of high inventory levels in medium and heavy commercial vehicle (M&HCV) segment.
The total domestic sales for the month of August are expected to fall by almost 44 percent.
The decline would be around 10 percent in August on the back of lower domestic volumes and muted export numbers of three-wheelers.