Vetri Subramaniam, chief investment officer at UTI AMC, said several parts of the Indian auto industry are showing signs of growth and increasing profits.
Vetri said in an interview with CNBC-TV18 that car sales have not only recovered to 2019 levels but are on track to surpass them this year.
According to Morningstar India, UTI has 14.4% of its large-cap fund assets in cyclical sectors (consisting of the auto sector, among others) and 10.66% in the same category, with the largest allocation to Maruti Suzuki. it was high.
India’s largest auto stock | |
stock | cr market capitalization (as of November 7th) |
maruti suzuki | 311,287 |
tata motors | 214,639 |
Bajaj Auto | 153,150 |
Hmm | 185,584 |
TVS motor | 76,377 |
Mr. Vetri’s comments come amid a recovery in sales during the Christmas season, against the significant backdrop of a recent decline in passenger car sales.
In September 2023, passenger car sales increased by 19% from the previous year to 3.32 billion units, and motorcycle sales increased by 21.7% to 13.12 million units.
However, growth in passenger cars has been driven by strong growth in luxury cars. Experts believe this may be due to easier access to credit and increased aspiration.
During Navratri, the industry witnessed a surge in bookings due to the introduction of attractive new models, especially SUVs, and the availability of attractive consumer offers.
On two-wheelers, Vetri of UTI, which manages more than $27 billion in funds, said sales are currently 20% below their all-time highs, but there is growing optimism heading into the Christmas season. Ta.
Going forward, festivals associated with the harvest season (particularly in rice fields) are expected to boost motorcycle sales, with new systems and a push toward electrification increasing optimism.
However, FADA also highlighted that passenger car sales remain weak and noted that overall showroom inventory levels have increased, with manufacturers ostensibly offering more discounts and offers. He said it should be given “urgent attention”.
(Edited by: Shweta Mungre)
First published: November 7, 2023 3:17pm IST