Following steady demand momentum in passenger vehicles (PVs) and tractors, the Indian automotive sector is expected to see a good recovery in the final month of the fiscal year 2021. Analysts predict a strong turnaround in FY2022E, owing to rising economic activity, improving fleet owner sentiment, and lower cost of ownership for BS-VI vehicles.
Emkay Global is a research and investment firm. On a sequential basis, Emkay Global Financial Services, a research and brokerage company, expects better domestic 2W volume results. Analysts claim that while demand from salaried and business community customers is improving, demand from students is still poor. Furthermore, distributor inventory is already being built up in preparation for the holiday season in April 2021.
The S&P BSE automobile index has rallied one hundred forty-five per cent from the 52-week low often,256 to 25,073 levels in the Gregorian calendar month this year. Since Gregorian calendar month this year, the BSE automobile index has corrected over eleven per cent.
On Wed, the BSE automobile index was up zero.26 per cent diode by gains in Tata Motors, Balkrishna Industries, TVS Motor Company, Escorts and Maruti Suzuki Asian nation. whereas benchmark BSE Sensex was commercialized nearly one per cent down in hour deals on Wed. The recent price increase announcement will not affect PVs, according to Prabhudas Lilladher, but it will dent buying sentiments in price-sensitive sub-segments for 2Ws. The brokerage firm prefers Ashok Leyland because it expects that MHCV volumes will rebound by H1FY22 as a result of improved economic conditions, which will benefit demand from sectors such as infrastructure, mining, and e-commerceMaruti Suzuki, one of the auto sector’s indexes heavyweights, is expected to see a rise in domestic volumes, powered by strong demand for entry-level vehicles, according to a brokerage firm.
Tractor sales are expected to increase by 76 per cent year over year for Mahindra and Mahindra (M&M), according to the brokerage company, as demand remains strong thanks to good rabi sowing and higher farm incomes.