In the second half of the financial year 1, the automobile sector in India is progressing rapidly. The Brokerage House believes that government strategic concessions, improvement in rural areas and launch of new vehicles will increase auto demand together. Repo and CRR rate reduction and GST rate reduction rates are considered to be the leading factor of this boom. The two -wheeler is expected to benefit the most.

In a recent budget, tax exemptions, good sentiment in rural areas and launch of premium electric two -wheelers will boost the sale of this section. The Royal Enfield and TS Motor have already shown a good increase in the first quarter of the financial year, while Hero MotoCorp is expected to improve the demand due to the festive season and GST deduction.

Stocks to bu: On September 1, these 17 stocks will be in focus, experts ‘buy’ rating

Even in the area of ​​passenger vehicles, the launch of new SUVs and electric vehicles will increase the demand. Due to the demand for new models, Mahindra & Mahindra has recorded a double digit increase in the first quarter. The domestic sales of Maruti Suzuki remained stable but exports improved, while Tata Motors declined year after year. However, analysts believe that the PV segment will re-accelerate the GST deduction due to the reduction of on-road prices.

Commercial vehicles are currently under pressure due to the monsoon collision, due to a slowdown in infrastructure work and the mining sector is weak. But e-commerce growth, last phase connectivity and investment of government infrastructure are expected to improve the department in the second half of the financial year 1. On the other hand, the tractor section is in a strong position. This business has been supported by the high minimum support price, good production, better monsoon than normal and good levels in reservoirs.

The brokerage firm is estimated that if GST is reduced by 2-3%, vessel prices can be reduced by 2-3%, which will increase the demand. On this basis, Jeffers have increased the size of the industry for the financial year 1-3 and the earnings estimate by 2-3% and the earnings estimate by 2-3%. In this, the TVS motor can benefit the fastest CAGR earning growth, while M&M will get 90% CAGR and Maruti Suzuki will get strength from export and hybrid launch.

B&K Securities say that auto anselories like Subroz, FIEM Industries and ZF Commercial Vehicle Control Systems will also benefit from this phase. Increasing PV production, regulatory technology and offermark demand will provide new growth opportunities to these companies. Overall, the Auto sector appears to be entering a good demand cycle in the second half of the financial year 1 due to strategic support, rural reforms and launch of new products.

Due to Trump Tariff, this ‘state’ loss of Rs 34000 crore, huge crisis on jobs