Icra downgrades growth peg of various auto segments due to second wave

Unlike the first wave, which was largely limited to urban clusters, the second wave has seen deeper and wider penetration, including rural hinterlands

The sudden and severe onset of the second wave of the pandemic in the country has derailed the recovery momentum of auto makers and auto-ancillaries to an extent. As a result, the ratings agency Icra has downgraded the growth estimates for most of the automotive segments, it said in a release on Thursday.

“The second wave of the pandemic, the intensity of which has taken the entire country by surprise, is expected to impact near-term automobile purchases, across segments, said Shamsher Dewan, Vice President & Group Head, Icra Ratings.

Amid lockdowns and curbs by various state governments, auto and component makers have