After setting a scorching pace of 30% year-on-year growth in 2010-11 (April-March), auto sales, especially those of passenger cars, were expected to slow this year as loans became expensive, vehicle prices rose and fuel prices soared. However, what was expected to be a slow growth seems to have turned into de-growth.
India's top passenger car maker Maruti Suzuki seems to have hit a rough road off-late. Shares too have taken a hit amid a slowdown in sales, appreciating yen and now the workers strike at its Manesar plant, which has sent production schedule for the Swift, one of its best selling cars, for a toss.
Commercial Vehicle maker Ashok Leyland missed estimates as first quarter net profit fell 30% from a year ago to Rs 86.25 crore amid high raw material costs and surge in financial expenses.
Vineet Hetamasaria of PINC Research in an interview on CNBC-TV18, gave his take as to what extent analysts will see further losses in Hero Honda or if the discount is already built into the stock price.