SBICAP Securities on Thursday said for the last six months demand in the auto sector was weak and it expects the market will recover after Lok Sabha Elections.
"Demand weakness has been there in the market for the last 6 months and even in April, we had anticipated a decline of 10 percent in case of Maruti and also for the overall industry as well," said Chirag Jain, auto analyst, SBICAP Securities.
“However, the decline has been much higher than what we had estimated and this is same for the industry as well,” he added.
The country's largest car maker Maruti Suzuki India Wednesday reported 17.2 percent decline in sales at 1,43,245 units in April. Domestic sales declined by 18.7 percent at 1,34,068 units last month as against 1,64,978 units in the year-ago month, it added.
“We believe even May could be weak and probably after the elections we should see some recovery in terms of sentiments and conversions which should drive improvement in the overall industry numbers," Jain said.