20 Nov 2022
- Retail sales in the early days of the festive season have been robust, and given the high order booking, retail sales could be expected to pick up further in the second half of FY23.
- The demand outlook for the medium term is supported by structural factors such as replacement demand, low penetration, need for personal mobility and aspiration.
- The softening of prices of commodities can help in keeping a lid on price hikes.
- The supply pressure for semiconductors has eased.
- Buoyancy in the rural economy because of a robust crop and higher government allocations are fuelling the demand for vehicles.
- More establishments are opening up, and without as much being added to public transport, the demand for personal mobility may likely to go up.
- Rise in prices of commodities.
- Elevated fuel prices, costs of automobiles going up even further.
- Aggressive competition in electric vehicles
(House View aims to regularly provide readers with Kotak Mahindra Mutual Fund’s latest updates on various sectors)
The views discussed here are as on end of Sep 2022.
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