Dipan Mehta, Member, BSE/NSE is positve on Maruti Udyog.

Mehta told CNBC-TV18, “Maruti is a company in which we have an investment and have recommended to our clients. Basically our view on Maruti is positive than that of Tata Motors, no doubt both the companies and the segments in which they are present in are being impacted by the present level of interest rates. Therefore to that extent, I think we should expect some sort of muted performance coming in for this fiscal.”

He further added, “But if you take a slightly longer-term view maybe two-three years when some of the interest rate related issues may ease and interest rates may actually start coming down, maybe six-twelve months from now then you could have volume growth coming into the automobile industry again. At that point of time, we feel that Maruti would be a better place to take advantage of the situation than Tata Motors.”

“Fact is that it has got very good backing of the Japanese parent company and aggressive roll out of new models coming in over there and on the whole the growth in the passenger car vehicle industries higher than that in the commercial vehicle segment of the industry. So therefore we are more optimistic on Maruti but I think that one should have a slightly longer-term outlook over there rather than just playing for maybe just six months or less."