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The festive season has not been able to bring profits to the auto industry as expected. The industry seems to be succumbing to the pressure put by various factors like hike in the prices of fuel, expensive lending rates, high costs of inputs and labor agitation in some cases. Barring a few companies, most of the auto giants have experienced this in the past quarter.

Most of the companies reported a drastic drop in their profit levels. The companies that can be put in this list include Maruti Suzuki and Tata Motors. However, some auto giants that witnessed a healthy increase in their profit levels include Mahindra & Mahindra. Hitesh Goel from the Institutional Equities said in a report that, “We expect a weak quarter for auto companies driven by the pressure of raw material cost. We expect Bajaj Auto, Hero Motocorp and M&M to report positive year-on-year earnings growth, while Ashok Leyland, Maruti Suzuki and Tata Motors are likely to report a decline in earnings.”

The strike at Manesar plant has caused the profits to shrink by 20 to 30 percent in the quarter that ended on September 30. Maruti Suzuki, the biggest car maker in India will probably announce its profits on October 29, and is expected to post its profits somewhere between 415 to 430 crore.

The profits of Tata Motors are also expected to have fallen in the second quarter. Although the sales of the Jaguar Land Rover have soared, the sales of the passenger cars in the domestic market have gone down significantly. The profits of the auto giant that were reported in March were Rs 2,209 crore are expected to come down to Rs 1,950-2,030 crore. S. Arun of the Bank of America Merrill Lynch said in a report, “Stand-alone margins of Tata Motors are expected to decline due to losses in small car business. JLR margins would largely be flat quarter on quarter, as favorable currency counters weaker mix.”

The profits of Mahindra & Mahindra are expected to be on an all-time high as the second quarter came to a close. The market leader of SUV in the country has an array of all-diesel SUVs in the market that benefitted due to hike in petrol prices. The sales of the company are expected to have grown by 30 percent more than that the sales at the end of the second quarter last year.

The second biggest two wheeler manufacturer in the country, Bajaj Auto has reported a double digit increase in the profits levels. Analysts think that the profits of the company increased by almost ten percent and attribute it to hike in prices and new launches in the past quarter. Hero Motocorp, the largest is also expected to report an increase in the profits by 12 to 15 percent.

According to experts, the two-wheeler companies did not feel the slowdown in business because of their low rates as compared to the four wheelers and are more fuel efficient than four wheelers. They will be the last sector to be affected by the decrease in demand in the market.