Morgan Stanley’s latest insights into the auto sector reveal mixed trends in December. While two-wheeler (2W) stocks faced weakening retail demand, passenger vehicle (PV) shares exhibited improving trends, led by Maruti Suzuki.
Maruti Suzuki share delivers positive wholesale surprise
- Maruti Suzuki India Limited (MSIL) emerged as a positive outlier in terms of wholesales.
- MSIL ended the month with 10-12 days of inventory as retail demand grew in the early single digits, showcasing strong resilience in the PV segment.
Bajaj Auto stock underperforms in two-wheeler segment
- Bajaj Auto’s wholesale performance was weaker than Morgan Stanley’s estimates, highlighting softness in the 2W segment.
Preferred auto shares: MSIL, M&M, Hyundai, and Ashok Leyland
- Morgan Stanley reaffirmed its overweight stance on Maruti Suzuki (MSIL), Mahindra & Mahindra (M&M), Hyundai Motor India (HMI), and Ashok Leyland (AL). These stocks continue to stand out due to their robust fundamentals and market positioning.
This mixed performance across segments indicates the evolving dynamics in the auto sector, with PV shares leading the way in December.
Disclaimer: This article is based on Morgan Stanley’s report and is for informational purposes only. Please consult your financial advisor before making any investment decisions.
