High commodity prices along with lower sales volumes are likely to put pressure on automakers’ margins after an improvement Q3FY21, Fitch Ratings said in a report. “We believe the price hikes announced by automakers in January 2021 will not fully offset higher costs,” the report said.”
We expect a quarter-on-quarter decline in volume from 3QFY21 on account of higher prices and a modest supply disruption due to a semiconductor shortage.