• Rating agency says that used cars and small PVs likely to see increased demand
  • Agency analysed 8 carmakers that account for about 80 percent of sales volumes
  • Carmakers expected to continue to offer discounts through first half on FY2021 and partly absorb higher cost of BS6 cars

Rating agency CRISIL expects passenger vehicles (PVs) sales volume (including exports) to plunge by 22-25 percent this fiscal to a decadal low of ~26.5 lakh units. That would mark the second year of double-digit volume decline after the 15 percent fall in fiscal 2020. 

Yet the credit quality of most passenger vehicle (PV) makers (original equipment manufacturers, or OEMs) would remain stable because of strong balance sheets and healthy liquidity. In some cases, support from strong parent/group will help navigate the rough terrain.  

CRISIL analysed eight PV makers (including two that are…

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