The March auto sales data proved to be a mixed bag. While the country's leading automakers Maruti Suzuki and Hyundai Motor saw a decline in dispatches owing to shortage of electronic components, Tata Motors, Skoda and Kia India posted their highest ever monthly wholesales in March. Joining the bandwagon of strong dispatches, Mahindra & Mahindra also reported a robust increase in its passenger vehicle dispatches during the period under review.In an interview with CNBC-TV18, Kapil Singh, Auto Analyst, Nomura, shed light on his take on the March sales data. He said that Mahindra & Mahindra (M&M) is one of their top picks. He explained that even though the company was plagued by supply shortages last year, its valuations are attractive.Singh said, "Mahindra and Mahindra (M&M) was plagued by supply shortages last year and now as the supplies are coming through, we are seeing a catch-up of the market share which is new for them. So with the supplies coming through, the order books are there for Mahindra XUV700, for Thar and they have some new launches coming through as well. A new Scorpio is coming up and they will have their electric launch towards the end of this year as well. So valuations are very attractive for the stock and it has been one of our top picks."Singh believes that the Indian auto component space could see a strong traction in the export market in the next few years. He is bullish on the space. He added that Sona Comstar and Sansera Engineering have seen traction in winning new business."Why we are positive on most of these names is we have seen a lot of traction in winning new business in new segments from most of these companies. I think over the next three to four years, the Indian auto component space will see significant traction in the global market," he said."Some of these companies are having a fairly high exposure of overseas revenues. We think that given that India is now starting to add technology-based kind of components in the cars, some of them will become relevant for global markets. So on the whole, very positive on the Indian auto component space. There is huge opportunity and I think the companies are working in the right direction," Singh mentioned.He highlighted that the commercial vehicle (CV) space has not seen capacity addition in 3-4 years, however he remains positive on the space. He mentioned that the two-wheeler auto sales were largely in line with the estimates. Additionally, Singh mentioned that Nomura has a buy rating on Ashok Leyland and Tata Motors.On next year’s demand forecast, he said that rising fuel prices could pose some downside risk there. However, he clarified that he doesn’t see a large impact on demand for sports utility vehicles (SUVs) or the premium vehicles due to the increase in fuel prices."Rising fuel prices is definitely a negative for demand and we think that there is a downside risk to demand forecast for next year because of rising fuel prices. So particularly, I would say the mass market segments is where the impact would be larger whether it is two-wheelers or cars, but the SUV or the premium space may not see a very large impact," he said,Watch the video for the full interview.