HDFC Securities: Scrapping Scheme Back On The Radar For Autos And Auto Financiers

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..HDFC Securities Report.The government has once again initiated talks to introduce a scrapping scheme, which could be rolled as early as October 2020.Approximately 0.6 million medium and heavy commercial vehicles were sold 15-20 years ago and an almost similar number 20-25 years ago.In our view, the introduction of this scheme will be supportive of commercial vehicle sales as the segment volumes are expected to decline to approximately 200,000 (down 50% from 2019 peak), given the impact of Covid-19 and BS-VI related transition on sales.Over the past two years, auto financiers (banks and non-banking finance companies) have reported slowing loan growth, in tandem with falling auto sales, amidst uninspiring macro.We believe that the scrapping scheme will be sentimentally positive for auto financiers as it could result in up-trading.However, in the absence of details of the scheme, the impact is difficult to quantify..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

HDFC Securities: Scrapping Scheme Back On The Radar For Autos And Auto Financiers

HDFC Securities: Scrapping Scheme Back On The Radar For Autos And Auto Financiers

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