India’s passenger vehicle production likely to improve in the next six months, suggested a GlobalData report.
The report also showed a steep decline of 58pc in vehicle production in May as compared to June.
Despite positive estimates for the next six months, production might remain subdued due to a potential third wave of COVID-19 in the country, which is likely to dampen demand within the country and in the global market. Thus, a recovery to pre-pandemic levels could be unlikely this year.
The second wave of COVID-19 resulted in the renewed lockdowns, which in turn led to poor Q2 of the calendar year 2021. However, the report released by GlobalData shows positive production levels this year as compared to the last.
The report also suggested that production was relatively stronger in Q1 compared to the second quarter, as several OEMs including Maruti Suzuki and MG Motors decided to divert their oxygen supplies to cater to the medical needs.
Automakers are hoping for a slew of new launches to drive demand and increase production.