Motilal Oswal positive on auto stocks

Manish Sonthalia, VP Fund Manager, Motilal Oswal AMC is positive on the auto stocks.

Sonthalia told CNBC-TV18, "We are positive on the auto stocks as a whole and coming specifically to Hero Honda, I think over the next 3 years we were building in Rs 2100 crore of royalty, now that the royalty figure has around Rs 2400 crore and the management has indicated that as a percentage of sales this will be coming down means that the volume growth assumption should be better than what analyst have figured factoring in or modeling in at this point in time."
He further added, "We for ourselves are building in something like 12.5-13% sort of volume growth going into this fiscal year which is 2012. But I think the volume growth assumptions if the royalty figure and the percentage of sales is to be maintained or coming down then this will be closer to around 17-18%. So I don