Automobile companies are expected to report positive sales figures in the passenger vehicle segment in February following improved chip supplies and healthy order books, analysts said.
Commercial vehicle numbers should be strong too as freight rates improve and infrastructure activity starts building up. However, muted demand and a high base in the year-ago period could hit two-wheeler sales in February.
The Nifty Auto index has been consolidating since the beginning of the current year and fell sharply in the past week following the market correction after Russia invaded Ukraine. The index fell about 7 percent in February, underperforming the frontline Nifty 50, which declined 4 percent.
“Channel checks indicate that commercial vehicles should maintain upward momentum in February,” Emkay Global said. “Passenger vehicle volume growth should also be positive thanks to improving chip supplies. Two-wheeler and tractors are likely to decline due to subdued customer sentiment and the high base effect.”