Auto stocks next week are likely to take cue from the August wholesale data that automobile manufacturers would detail over the weekend. With the Apr-Jun gross domestic product growth already at a decade low, market watchers say there shouldn't be much to look forward to as far as auto despatch numbers are concerned.
According to government data released today, the country's gross domestic product grew 5.5% in Apr-Jun, compared to 8% in the corresponding quarter of last year. While it is known that August passenger car sales would be on the lower side, it would be interesting to see how the two-wheelers, which have till now withstood economic slowdown, have fared in the month.
The domestic automobile market is slipping into a slowdown and unless the new Finance Minister, P Chidambaram, decides to offer a stimulus package, the slowdown is only expected to get deeper. Loan rates (rates at which new vehicles are financed) remain high in the 12-15% range, petrol prices have not softened in any significant way and the difference between petrol and diesel prices remains as wide as ever.
According to the Society of Indian Automobile Manufacturers, two-wheeler sales grew the slowest in July, since October last year. Stocks of two-wheeler companies have already fallen 4-9% in the past few sessions on concerns that August sales figures are likely to be disappointing. News of likely production cuts and inventory build-ups at dealer levels are also going to be keenly watched by investors.
(www.rupeedesk.in)
According to government data released today, the country's gross domestic product grew 5.5% in Apr-Jun, compared to 8% in the corresponding quarter of last year. While it is known that August passenger car sales would be on the lower side, it would be interesting to see how the two-wheelers, which have till now withstood economic slowdown, have fared in the month.
The domestic automobile market is slipping into a slowdown and unless the new Finance Minister, P Chidambaram, decides to offer a stimulus package, the slowdown is only expected to get deeper. Loan rates (rates at which new vehicles are financed) remain high in the 12-15% range, petrol prices have not softened in any significant way and the difference between petrol and diesel prices remains as wide as ever.
According to the Society of Indian Automobile Manufacturers, two-wheeler sales grew the slowest in July, since October last year. Stocks of two-wheeler companies have already fallen 4-9% in the past few sessions on concerns that August sales figures are likely to be disappointing. News of likely production cuts and inventory build-ups at dealer levels are also going to be keenly watched by investors.
(www.rupeedesk.in)
