Hero to benefit from rural recovery first; like Maruti: LKP Sec

Automobile sales have taken a hit in December due to the demonetisation scheme that was implemented on November 9 across the country. Speaking on specific companies, Ashwin Patil of LKP Securities believe that Maruti Suzuki will see momentum returning in future with a line-up of new models. Maruti saw a 1 percent decline in sales in December. In two-wheelers, Bajaj has been performing better than other two-wheeler companies, he said. However, in the last two years, it has seen a decline in exports. Now, with demonetisation, domestic sales, too, are getting crippled. Patil said that if recovery happens, the first to benefit will be Hero Motocorp, which offers small ticket products. On Ashok Leyland, Patil said that a 9 percent fall in heavy commercial vehicles is heartening as the number was expected to be in the range of 15-20 percent.Watch video for more...