Mirae Asset positive on passenger car segment

Rahul Chadha, Mirae Asset Global Investments is more positive on passenger car segment over two-wheelers in the auto space.

Chadha told CNBC-TV18, "Within autos we are more positive on passenger car segment over two-wheelers. At declines we have been adding to our exposure to the leading passenger car manufacturer in the country. I think the name benefits from JPY depreciation and we clearly believe that Yen is here to stay at around these levels and as the demand picks up, we should see a strong earnings leverage.”
He further added, “Outside that we also continue to like luxury cars plays globally. We have also got another large manufacturer, which has a good model line-up, so at declines we would be looking at that.”
“If you look at two-wheeler industry the competitive intensity is going to be fairly high for that industry for next one or two years. So we would like to stay away from that industry at that point of time. Outside that select auto ancillaries look attractive to us and we have been adding to our exposure over there."