With India getting back on the road with economic recovery, automobile manufacturers have been witnessing revival in demand in various segments
With India getting back on the road with economic recovery, automobile manufacturers have been witnessing revival in demand in various segments. Some manufacturers have been seeing tractor sales while others have seen growth in sales of entry level cars. Manufacturers of cars, tractors and other vehicles were expected to see a spike in sales as the economy opened up owing to pent-up demand and even the shift towards personal mobility owing to the coronavirus pandemic. Analysing the sale volumes, brokerage and research firm Motilal Oswal has picked its top bets in the automobile industry.
The automobile giant Mahindra & Mahindra (M&M) is a large player in the tractor manufacturing space. M&M’s tractor volumes surged 65% on-year basis to 24,500 units, beating street estimates. Coming to the personal vehicle space, M&M saw 1% growth from the previous year and 24% jump from the previous month. Volumes were driven by utility Vehicles. The positive momentum in the agricultural sector is expected to drive up demand for the company’s offering in the tractor business. Motilal Oswal expects an upside 19% for the stock.
Source: Financial Express
