With the ongoing pandemic, there is a glimmer of hope for the aftermarket segment. Batteries are expected to be the outliers despite the overall weakness witnessed by the automotive sector. Especially Lead-acid Batteries (LAB). The LAB segment revenue is estimated to grow marginally (~ one per cent) to Rs.330 billion in FY21E. It is expected to be driven by the aftermarket volume growth of 14 per cent in two-wheelers and an estimated six per cent from other vehicular segment batteries. Nonutilisation of vehicles driven by lockdowns according to the Emkay Global report will translate to batteries discharging. Old batteries, it is expected would be replaced. This in turn will positively impact the aftermarket volumes. Here Original Equipment Manufacturer (OEM), Exports and Industrial battery segments will be an exception and continue to be under pressure.
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