Ind-Ra revised auto volumes growth forecast to 12%-16% YoY from the initial forecast of 16%-20% YoY. The downward revision is due to a revision in the growth forecasts for 2Ws and PVs.

Ind-Ra expects volume growth to continue in August 2021, driven by improving consumer sentiments and the onset of festive season. It feels the semiconductor shortage could pose supply-side challenges.

According to Ind-Ra (India Ratings and Research), the 193% sequential and 15% YoY increase in the domestic auto sales volumes in June 2021 was due to the relaxation of localised lockdowns.

The second covid wave has stalled the auto industry’s momentum recorded in 3Q-4QFY21, according to a recent report published by India Ratings and Research (Ind-Ra).