For Automobile sector, November month was a mixed bag, which was looking forward to good festive sales in an otherwise sluggish market. Domestic car sales continued its upward trend, third consecutive month of uptrend, to 231,543 units. Domestic top 3 car makers-MSIL, Hyundai and Mahindra & Mahindra (M&M), around 71% of domestic volume, saw a decrease in volume growth in sequential basis.
In January 2013, it will be an expensive start to the year for car buyers in 2013 with automobile companies led by Maruti Suzuki India deciding to hike prices of their vehicles, and others also considering a similar move. 2-W makers have done well courtesy to rural sales.
Commenting on the sector, Shah Investor's Home (SIHL) said, "Volume post festive season still remains a concern however rate cut in January could improve the sentiments of the consumers. Indian government has confirmed that they will not impose any addition tax on diesel vehicles which was recommended earlier to not only control sales but also to make up for the subsidy that is offered to diesel."
''We estimate hike in diesel engine cars would impact more sales than hike in diesel prices. We estimate 4-Ws segment could see revival of performance due to rate cut (if any), stable fuel prices and new model launches. 2-W domestic market faces intense competition; hence exports and new model launches at competitive prices would drive growth,'' said SIHL.
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