homeauto NewsWe are doing well in the domestic market, says Jitendra Adhia of Atul Auto
auto | Nov 4, 2019 3:07 PM IST

We are doing well in the domestic market, says Jitendra Adhia of Atul Auto

The domestic automobile sector has witnessed a mild recovery in the festive season this year. The passenger vehicle segment reported its first monthly growth in almost a year in October 2019.

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Industry volumes gathered from the top 11 passenger vehicle makers that released their figures last week pointed to a marginal 1.5 per cent growth last month at 280,418 units against 276,398 units last year.
Jitendra Adhia, president-finance at Atul Auto and Bharat Gianani of Sharekhan spoke to CNBC-TV18 about the latest happenings in the domestic auto sector.
We were up to the mark in the domestic market. In fact, with exports there are a couple of countries which are having some struggle with forex. The export number is down by 5 percent. In fact, we have some issues with African countries,” Adhia said.
Talking about margins, he said, “I do not foresee that there will be any big issue with the margin considering the overall volume which is touching 100 percent capacity utilisation for the month.”
Bharat Gianani of Sharekhan said the retail sales have shown some improvement in the festive season.
“This time October had the benefit of all 3 major festivals – Diwali, Dussehra and Navaratri being in the same month. So there was a bit of a momentum in the retail sales. Also there were some pent-up demand; in mid-September there was uncertainty whether the GST rate will come down or not. So there was some tailwind in October but whether it may sustain or not seems to be a bit of a challenge,” added Gianani.
Speaking about stocks, Gianani said, “We have a cautious view on the sector. So we have reduced ratings on Bajaj Auto, TVS Motors and Ashok Leyland.”
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