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Auto Sector Q2 Earnings Preview - Supply-Side Issues To Hurt Performance: Motilal Oswal

Auto Sector Q2 Earnings Preview - Supply-Side Issues To Hurt Performance: Motilal Oswal

<div class="paragraphs"><p>Vehicles sit loaded on a transporter train&nbsp;in Dagenham, U.K.(Photographer: Luke MacGregor/Bloomberg) &nbsp;</p></div>
Vehicles sit loaded on a transporter train in Dagenham, U.K.(Photographer: Luke MacGregor/Bloomberg)  

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Demand evolution has been a mixed bag since the lifting of the second Covid-19 related lockdown restrictions from mid-June 2021.

Demand has bounced back quickly for passenger vehicles, but two-wheelers have seen a slower recovery.

Commercial vehicles are recovering gradually, but demand for tractors has been sluggish.

The semiconductor shortage has hurt supplies for passenger vehicles, premium two-wheelers, and light commercial vehciles, which will potentially impact the upcoming festive season.

Prices for core commodities have seen some stabilisation since Q1 FY22 and a 20-50% reduction in the precious metals basket.

We expect the same to impact with some lag in Q2 FY22E and then stabilise thereafter.

Click on the attachment to read the full report:

Motilal Oswal Automobiles Q2FY22 Earnings Preview.pdf

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