Ailing auto sector to contribute less to GDP

New Delhi: Indian auto sector's contribution to the GDP in the current fiscal may come down to 7 per cent from 7.5 per cent in 2018-19 with overall revenue of the original equipment manufacturers (OEM) expected to dip by up to 6 per cent in 2019-20, according to a study.

As per Acuite Ratings & Research, the total domestic sales of the automobile industry, including, passenger vehicles, commercial vehicles, two wheelers and three wheelers, were expected to decline by 6-7 per cent this fiscal as compared with 2018-19 to around 25 million units.

It also expects the sectoral revenue to decline by 5-6 per cent year-on-year (y-o-y) to Rs 3-3.2 trillion as compared to Rs 3.35 trillion in 2018-19.

In the second quarter (July-September) of this fiscal itself, the ratings firm expects OEM revenues to drop by 23-25 per cent to Rs 0.6 trillion as compared with 0.8 trillion in the same period previous fiscal.