Outlook for two-wheelers stable, negative for cars, CV and components: Icra

Credit profile of two-wheeler makers may remain strong despite moderation in earnings; demand weakness in domestic market has been partially offset by healthy export growth

Despite the on-going slowdown, two-wheeler OEMs have a stable outlook, while passenger cars, commercial vehicles and auto components outlook will be negative, says rating agency Icra.

For the next 12-18 months outlook for two-wheeler is stable, says Icra, inspite of the on-going slowdown in two-wheeler sales and near-term volatility anticipated due to forthcoming BS VI transition.

Icra expects the credit profile of two-wheeler makers to remain strong despite moderation in earnings. Furthermore, demand weakness in the domestic market has been partially offset by healthy export growth.

The domestic two-wheeler segment reported volume contraction for the 12th consecutive month in November