Automobiles & Auto Components
Automobiles & Auto Components
SECTOR | 19 Apr 2021, 12:00AM
BP Wealth
Sequential improvement in demand and lower base to augur well We expect 4QFY21 earnings for Auto & Auto Ancillary to witness sequential growth driven by healthy volume recovery and cost control measures. Pent-up demand, increased preference for personal mobility and strong rural sentiments has enabled to revive the sector. Ramp-up in production post unlocking measures has helped to fill channel inventory. Tractor, PV and 2W OEMs witnessed good pent-up demand, aided by strong rural and semi-urban markets. CV segment is gradually witnessing a recovery led by increase in construction activities and national infrastructure projects. All such factors are expected to leverage the operational performance of OEMs. However, most of them have taken a price hike across their models to mitigate the risk of commodity costs. Going ahead, the rising case of covid-19 and stringent lockdown measures can impact the overall sales in near term....
Axis Direct released a Sector Update report for Automobiles & Auto Components on 05 May, 2025.
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