Two-wheeler automobile stocks were a mixed bag in the morning trade on February 21 after global brokerage firm CLSA predicted a mid-single-digit growth in volume this month.
At 11:00 am, shares of Bajaj Auto Limited were trading at Rs 8,255, down 0.5 percent from the previous close on the NSE, while Hero MotoCorp slipped 1.3 percent to Rs 4,603. Eicher Motors, however, snapped its two-day losing streak and gained 1.5 percent to trade at Rs 3,885, and TVS Motor Company was up 0.2 percent.
Follow our live blog for all the market action
"Retail volumes in two-wheelers will grow at mid-single digits in February despite having 29 days in comparison with 28 days during the same month last year," CLSA analysts said in a report.
The broking firm added that the competition in the space is escalating, especially in the electric vehicle space and premium motorcycle segment. This could potentially affect the margins of original equipment manufacturers (OEMs).
On the electric vehicle segment, CLSA said that despite an increase in discounts, EV sales are poised to remain flat in February.
In January, two-wheeler sales rose 15 percent to 14,58,849 units on the back of an improvement in vehicle availability, the introduction of new models and a shift towards premium options.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
