Automobile dealer revenue growth to slow to 7-9% this fiscal year

Crisil Ratings has projected a slowdown in automobile dealer revenue growth to 7-9% this fiscal year, down from a healthy 14% last year. The credit rating agency attributes this decline to slower volume growth and modest price hikes by automakers. Recent months have seen a slowdown in sales volume growth, prompting manufacturers and dealers to increase discounts and offers. While this primarily affects manufacturers, car dealership profitability is expected to drop to around 3%, slightly…