However, the industry itself and sector analysts are optimistic that the worst is over.
Kolkata: Automotive industry, which accounts for about half of nations manufacturing GDP and has nosedived recently, thanks to an acute demand dearth and overall economic slow-down, is likely to be one of the key beneficiaries of the recent corporate tax revision, experts feel.
In the current fiscal, the auto industry, especially passenger vehicle segment has witnessed one of the worst slides since the last two decade because of tighter financing environment for consumers and liquidity crunch for dealerships coupled with weak farm income and overall slowdown in economic activity has impacted consumer sentiments and purchasing behaviour.
However, the industry itself and sector analysts are optimistic that the worst is over. When it comes to auto industry, the OEMs are expected to pass on some of the benefits of the recent tax revision to end consumers, Icra said in a report.