Auto outlook stable-to-negative in H2 FY20

India Ratings and Research, has revised its outlook on the auto sector to stable-to-negative from stable for the remaining half of the current fiscal. This is a clear indication of the rating agency’s expectation of negative volume growth in the industry amid weak urban and rural consumption coupled with inadequate credit availability and rising cost of ownership. It also said that though volumes declined sharply during April-September, the second half of the year will see flat-to-low single-digit growth, supported by the festive season and pre-buying due to the likely price rise from April 2020 following implementation of BS-VI emission norms.