Auto sector shifting gears, Feb volumes indicate fast recovery in sight: Angel Broking

Views of Mr. Shrikant Akolkar (Research Analyst- Auto & Auto Ancillary, Angel Broking):

"Overall the February auto sales numbers indicate that the domestic auto industry is showing traits of strong recovery. PV segment has shown resilience which is reflected by growth of 11% and 12% respectively in Maruti Suzuki and Tata Motors' February numbers. Maruti Suzuki has continued to report strong growth in UV segment while Tata has reported good response to its latest UV offering Tata Hexa as well as recently launched hatchback Tata Tiago. Though the two wheeler numbers were impacted most after demonetisation, the February sales data shows that the 2W industry remains on a path to strong recovery. CV maker Ashok Leyland reported 5% YoY growth in CVs indicating it has continued to show recovery in its CV sales. Overall we expect good volume growth in March as ample liquidity is likely to have restored. The low interest rates are also likely to drive the automobile sales."

Source : Equity Bulls

Keywords