Last updated: 30 Dec, 2020 | 12:07 pm
Global financial services firm Nomura, in its report on the Auto sector, said that it expects some auto and auto components makers to benefit from the government's ₹1.46-lakh-crore PLI (Production Linked Incentive) scheme to boost domestic manufacturing. The following table shows the companies in the Original Equipment Manufacturers segment and the Auto parts segment which Nomura expects to be the potential beneficiaries.
Details of the PLI Scheme
Impact on the Auto sector
Even before the pandemic struck and triggered the economic downturn, Automobile sector was struggling for years. The cycle now has seemed to turn and the sector has seen a quick recovery. Post lockdown numbers were aided by pent up demand, the festive season and changing consumer preferences towards personal mobility. Two-wheelers have outperformed all other segments with commercial vehicles remain under pressure. Going forward the industry needs a couple more quarters of good growth to establish that a strong recovery has started and the post lockdown numbers were not just because of the pent up demand.