Nomura stated that the downside hazard remains for most car agencies except Bajaj Auto. Deutsche Bank believes that the two-wheeler (2W) witnessed a third consecutive month of decline in February 2019 despite a sturdy February 18 base.
Auto sales for February remained subdued across all segments. Statistics show that the retail sales have been disappointing in February amid a high quantity of unsold inventory and tepid buying sentiments.
Nomura stated that the drawback risk remains for most vehicle organizations besides Bajaj Auto. It expects the enterprise’s overall performance to stay weak within the near term on high stock and rising value stress. Hence, wholesalers are likely to remain subdued despite a few improvements in retail in March because of the marriage season. The brokerage keeps a nine percent YoY industry boom estimate for FY20F. The top pick for Nomura in the car industry is Maruti Suzuki.
Meanwhile, Deutsche Bank believes that the 2-wheeler section (2W) witnessed a 3rd consecutive month of decline in February 2019, at the lower back of a strong February 18 base of +24% YoY. Among the mass-marketplace gamers, Bajaj Auto (6 percent YoY) and TVS Motor (zero. five percent YoY) outperformed the market, while Hero MotoCorp was widely in-line.
Motilal Oswal said the passenger car (PV) volumes remained terrible but looked convalescing due to new product launches and occasional channel inventory. The increase in tractors’ quantity slowed down due to a high base and muted farm sentiment in key markets. The brokerage prefers PVs over CVs/2Ws due to their stronger volume increase and solid, aggressive surroundings. The top picks from massive caps are Maruti Suzuki, Mot, her son Sumi Systems End, France Technologies, and Exide Industries from mid-caps.
