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Auto Sector Check - Gradual Improvement But Challenging Situation Continues: Reliance Securities

Auto Sector Check - Gradual Improvement But Challenging Situation Continues: Reliance Securities

<div class="paragraphs"><p>Evening shots of vehicles moving on a road. (Source: pxhere)</p></div>
Evening shots of vehicles moving on a road. (Source: pxhere)

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Reliance Securities Report

We expect the industry volume to improve gradually every month over the next three-four months backed festival season kicking in now. We expect retail demand to remain strong in FY23, though ongoing global geopolitical issues continue to keep pressure on economies and elevating inflation level across countries. This has been limiting industry wide recovery at the moment.

However, softening commodity prices and stable fuel prices would support industry ahead. We expect automobile industry to witness double digit growth in FY23, while we expect medium and heavy commercial vehicle and three-wheeler segments to outperform with 30% plus volume growth in FY23.

Nonetheless, long-term fundamentals continue to remain intact for automobile sector, in our view.

Click on the attachment to read the full report:

Reliance Securities Auto Sector - Monthly Volume Round-up – July’22.pdf

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