Passenger vehicle industry's margins contract in March quarter

Total income of the passenger vehicles industry increased by 26 per cent in March 2021 quarter on y-o-y basis.

Net sales of the industry also increased by 32 per cent on Y-o-Y basis in March 2021 quarter.  

Nonetheless, operating profit of the industry increased by 28.8 per cent in March 2021 quarter as compared to March 2020 quarter.  

Other income of the companies declined by a sharp 89.8 per cent due to lower fair value gains on invested surplus. Consequently, net profit of the companies on aggregate basis fell by 9.7 per cent.

Operating expense of the industry grew by 32.1 per cent, at par with the growth in sales. Operating profit margin of the industry contracted by 20 basis points to 8.3 per cent.  

Net profit margin contracted by 190 basis points to 4.8 per cent in March 2021 quarter.


Shivani Sharma, Pragati Srivastava