How do you see the impact of the lockdown on auto sales of companies like Maruti, Tata Motors and M&M?

Clearly, the impact is going to be really sharp on the auto companies. With the lockdown continuing and the lag effect to last for some time, auto manufacturers in India have already warned about a fall of 45% in auto sales this year compared to the previous year. SIAM has estimated that in a worst case scenario, if the Indian economy contracts by 2% in FY21, it would translate into a 45% fall in auto sales. SIAM has highlighted that even if the Indian economy were to grow at +2% in an optimistic scenario, the auto sales would still see 20% negative growth. In FY20, the sales of automobiles are already down by 18.5% and a further 45% cut could have deeper implications for the economy. Most Indian auto companies are already facing downtime, job cuts, cost cuts and weak sales. Revival could be a long task.