Most of the Auto firms in India had a disappointing March quarter on the back of subdued demand; high fuel prices, higher insurance costs and liquidity squeeze in the economy. The increased ownership cost in addition to stress at the farm level hampered buying sentiment, particularly in 2Ws/PVs segment. Consequently, inventories were at record levels across segments and particularly it was highest in the two-wheeler segment at 60-70 days. Almost all auto companies are facing the issues of high inventory levels across the country, that has forced auto companies to cut production, companies which have cut down on production include big names such as Maruti Suzuki, Bajaj Auto, and Hero Motors. This slow down is directly reflected in auto sector earnings, which have seen sharp declines in profits across the board. Bellwether companies such as Hero Moto Corp, TVS Motor have been worst hit in terms of profitability.