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ICICI Securities Report
Post the soft start of January 2021 dispatches, despite the supply-chain issues, original equipment manufacturers have maintained dispatches to create an incremental buffer in the channel for the upcoming marriage season (April 2021 onwards).
However, the increase in product prices in Q1 CY21 in the wake of higher input seemingly is keeping consumer sentiment in check (visible in retail demand trends).
Faster vaccination could help in improving urban demand for a few segments (e.g. scooters, three-wheelers).
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