As Sri Lanka is engulfed by its economic crisis, the new destination for Indian auto companies seems to be Bangladesh which is on the brink of a major economic boom, spurring auto majors to look eastwards.

Small cars, sports utility vehicles, sedans, and two-wheelers are set to get costlier with automakers raising prices to partially absorb the impact of high material costs.

The use of artificial intelligence (AI) in the manufacture of motor vehicle parts for all types of automotive vehicle is a major trend.

The reimposition of restrictions due to the rise in Covid cases is expected to impact demand for automobiles, especially for passenger vehicles and two-wheeler, according to ratings agency Acuite.

Kumar Rakesh, senior automobile and technology analyst at BNP Paribas India, said that, raw material prices are stabilizing and price hikes would positively impact the margins of automakers.

Speed breakers such as the third COVID-19 wave triggered via the spread of the Omicron variant in India as well as rising commodity prices might decelerate the automobile industry's recovery.

India Ratings and Research (Ind-Ra) November 2021 report highlights the trends in the sub-segments of the auto sector, including passenger vehicles (PVs) and two/three-wheelers (2W/3Ws), focussing on sales volumes growth.

American auto component maker Dana has said that India offers huge opportunities for the company in the EV space and it continues to invest in all its facilities depending upon the demand.

India’s passenger vehicle industry is set to lose 500,000-600,000 units in production and more than $5 billion in revenue this fiscal year due to the global shortage of semiconductors, say industry executives.