CLSA reported strong retail growth in the auto sector during the recent festive season, driven largely by inventory correction. Dealers have expressed optimism about double-digit growth for two-wheelers (2Ws) in FY25 and mid-single-digit growth for passenger vehicles (PVs).
Festive retail sales for both 2Ws and PVs saw a significant boost in the second half of October. Inventory levels have now normalized, with discount levels remaining steady since September 2024. Looking ahead, the upcoming marriage season in November-December is expected to further support retail sales in both segments.
CLSA noted that Mahindra & Mahindra (M&M) and Maruti are its top picks in the auto sector, given the positive outlook. The brokerage expects discount levels to remain unchanged through October and November.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult with a financial advisor before making any investment decisions.
