Raghav's Portfolio: Requesting feedback

In classical theory, Auto is indeed considered cyclical, since it is both a driver, and a beneficiary of economic activity. In bad economic conditions, consumers do not buy vehicles and either cancel, or postpone purchase decisions. In mature western markets where the penetration automobiles has saturated, growth is very tepid and here we can see that auto is indeed cyclical. In India, the penetration of automobiles is not as much and so the growth is still secular albeit a cyclical downturn might mean a slowdown of growth, not absolute numbers. The attached pictures tells a story! The numbers are revenues. The Ford numbers may overlook spin offs, or other corporation actions, but then that is also part of the consequences of cyclicality, right ?

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Notice that Ford had a downturn of 34% in sales and its current year revenues are not yet on par with 2005.

Maybe GM or other companies might have a better history, but this example suffices for illustrative purposes.

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