Automakers face further earnings downgrades on weak earnings, low volumes

Volume growth across segments has been either flat or negative for most companies, with two-wheelers bearing the brunt

Though the BSE Auto index has shed over 23 per cent from its highs a year ago, it could see more downward pressure on the back of downgrade triggers. While muted volumes going ahead is one such pain point, the March quarter (Q4) earnings season is another reason why the Street would not fancy auto makers as well as auto component suppliers.

Volume growth across segments has been either flat or negative for most automobile companies, with two-wheelers bearing the brunt. Slowdown in demand triggered due to the rising cost of ownership and issues related to financing of vehicles have