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Indian auto firms are likely to see sluggish growth due to floods, and delayed festival. Automotive volume growth in August will remain subdued due to a delayed festive season, Nomura says in a note, with Maruti Suzuki India as the brokerage's long-term top pick.
It says that passenger vehicles will see flat sales due to delayed festival season (Diwali festival is in November this year. Growth in two-wheeler industry will remain flat due to floods in Kerala and disruption in West Bengal due to licences being made mandatory to buy two-wheelers.
Rural demand momentum is healthy, Nomura says, and has maintained an estimate of about 10 per cent industry growth in two-wheelers in FY19. Maruti and Eicher Motors' Royal Enfield are expected to be hit the worst due to high exposure to Kerala.
The brokerage expects medium and heavy commercial vehicles sales to rise about 8 per cent, while Tata Motors Ltd is likely to see a fall in sales due to an adverse base.
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