ICRA downgrades forecast for passenger vehicle industry

Ratings agency ICRA on Wednesday revised downwards its growth forecast for the domestic passenger vehicles industry to 8-11% in the ongoing fiscal from the earlier 14-17% on account of the ongoing semiconductor shortage.

Similarly, for the two-wheeler segment, it said the volumes are expected to contract 1-4% in financial year 2021-22 against an earlier prediction of 6-8% growth as affordability and demand sentiments of target clientele have been hit sharply by the second wave of the pandemic.