Nomura said that the danger exists for most vehicle organizations besides Bajaj Auto.
Deutsche Bank believes that the two-wheeler (2W) witnessed a 3rd consecutive month of decline in February 2019, at the return of robust February 18 base.
For February, car sales remained subdued throughout all segments, with statistics showing that the retail income was disappointing in February amid a high amount of unsold inventory and tepid buying sentiments.
Nomura stated that the disadvantageous chance remains for maximum auto agencies besides Bajaj Auto. It expects the industry’s overall performance to stay weak in the short-term period due to high inventory and growing price pressure. Hence, wholesalers are probably to remain subdued regardless of some retail developments in March because of the marriage season. The brokerage continues a 9 percent YoY industry increase estimate for FY20F. The top pick for Nomura from the auto quarter is Maruti Suzuki.
Meanwhile, Deutsche Bank believes that the two-wheeler phase (2W) witnessed a third consecutive month of decline in February 2019, again of sturdy February 18 base of +24% YoY. Among the mass-marketplace gamers, Bajaj Auto (6 percent YoY), TVS Motor (zero.5 percent YoY) outperformed the market while Hero MotoCorp was broadly in line.
Motilal Oswal said that the passenger vehicle (PV) volumes remained negative; however, they seem to convalesce because of new product launches and coffee channel stock. The tractors’ volume boom bogged down due to a high base and muted farm sentiment in key markets. The brokerage prefers PVs over CVs/2Ws due to their more potent volume growth and strong, aggressive surroundings. The top selections from large caps are Maruti Suzuki and Motherson Sumi Systems, Endurance Technologies, and Exide Industries from mid-caps.
