In our coverage universe, Maruti Suzuki, M&M are our top picks. This is because they have an extensive distribution network and strong rural franchise, and would be major beneficiaries of demand revival in the next two years. We also prefer Eicher and Force Motors, given the increasing preference for premium, stylish and differentiated vehicles. We continue to maintain our positive stance on Tata Motors, as JLR's volume growth momentum is likely to continue with its healthy new product cycle and margin trajectory. 1QFY18 is expected to be a muted quarter for auto companies. PV/2W wholesale dispatches were strong in first two months of the quarter, but June sales were impacted by uncertainty ahead of GST. OEMs reduced their shipments to help dealers liquidate their stock. Customers postponed purchases, owing to expectations of price cuts post GST implementation.