While commercial vehicles recorded reasonable growth over the same period last year, a revival of demand was visible in passenger vehicles.
The domestic sales volume for the automobile sector fell 18 percent on-year during the quarter ended March 2022.
Passenger vehicle sales declined by 4 percent on-year in March and were down marginally during the quarter.
They expect the impact of raw material headwinds will be negated by price hikes taken by the players and also due to a better product mix which will result in a 50-100 bps increase in gross margins for the OEMs. Tata Motors and Mahindra & Mahindra are expected to lead with 28 percent on-year growth in revenues for the quarter.
It maintains a ‘sell’ on Maruti Suzuki and Eicher Motors.