Nomura said that the drawback danger keeps 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 returned of robust February 18 base.
Car sales for the month of February 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 disadvantage chance keeps for maximum auto agencies besides Bajaj Auto. It expects the industry overall performance to stay weak in the close to-time period on high inventory and growing price strain. Hence, wholesalers are probably to remain subdued regardless of some development in retails in March because of marriage season. The brokerage continues a 9 percent YoY industry increase estimate for FY20F. 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, at the 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 seem like convalescing because of new product launches and coffee channel stock. Speaking about tractors’ volume boom, it 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, and Endurance Technologies and Exide Industries from mid-caps.
