3) Autos – High raw material inflation and operating deleverage impacted the sector’s Q2FY22 results. OEMs like Maruti Suzuki, Bajaj Auto, and TVS reported a commodity cost impact of 2-4pp sequentially, but expect semi-conductor supply to improve from the Q2FY22 levels.
Moreover, “Companies have taken price hikes to pass on the impact of commodity costs, and the impact on demand elasticity remains to be seen.