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Prefer CVs followed by PVs and two-wheelers, says Elara’s Jay Kale

Updated : January 15, 2021 04:28 PM IST

Two-wheelers in FY22 will not reach their FY19 peaks, said Jay Kale, Vice President-Research at Elara Capital, on Friday.

Speaking about Q3FY21 estimates for the auto industry, he said, “We have to take into consideration that FY20 also saw a big decline for both the two-wheeler and passenger vehicle industry. So the real benchmark should be FY19 on when these volumes could reach FY19 peak.”

“Our pecking order would be the commercial vehicle (CV) side where it’s at an upcycle recovery followed by passenger vehicles and two-wheelers,” said kale.

On the tractor industry, Kale sale, “We recently upgraded our numbers for the tractor industry and FY21 and FY22 will see an upside. In FY21, the tractor industry is the only segment that would have crossed the FY19 peak. So from a cyclicality perspective, we have to take that into consideration when we pencil in ’22-23 growth. The growth couldn’t be as strong as the other segments growth in ’22-23.”

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