In April, auto sales figures could be seen to fall drastically amidst the ever increasing cases of Covid in the country. In April, the auto sales data will see the impact of regional lockdown, supply constraints and reduction in footfall in show rooms across the country. But the giants say that these are short-term problems. Once the conditions become normal, sales will see a strong boom.
As far as the April sales figures of tomorrow are concerned, market giants say that the double digit decline can be seen in the April auto sales figures.
This decline will be seen in both passenger and commercial vehicles. Apart from this, both urban and rural markets will be affected by this decline.
Prabhudas Lilladher Says that in a conversation with the leading channel partner of the auto sector, it shows that there will be a sharp decline in auto sales on a month-on-month basis in April. The reason for this is the regional lockdown due to Corona, problems related to supply and low foot fall in the showrooms during the festive and weddings season.
Prabhudas Lilladher Let’s further say that in contrast to the previous year, this year may see a decline in the sales of rural sector. Retail and urban sector sales may fall by 15-20% in all segments on a month-on-month basis in April.
Experts say that there may be some increase in the sales of cars and tractors in the month of April. At the same time, 10 to 20 percent decline in two-wheeler and commercial vehicle sales is possible.
Keep an eye on these stocks
Motilal Oswal Says that from the perspective of investment, we should keep an eye on those auto companies in which there is a possibility of growth in the event of demand recovery. Look at stocks whose margins are likely to be good and whose balance sheet is strong. from this perspective Maruti Suzuki, Mahindra & Mahindra are the top OEM pics. At the same time, Tata Motors can also prove to be a good bet.
Prabhudas Lilladher Says that a strong recovery is expected in the first half of FY 2022. From this perspective Ashok Leyland A better bet appears. Also in FY 2022 with a spectacular outlook in the FES segment in 2022 M&M I can see good growth. Apart from this, the company will also get the benefit of increase in form income due to good penetration in rural areas and better monsoon.
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