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Stocks of major automakers are expected to trade in line with the broader market, with
Maruti Suzuki India Ltd's counter seen volatile. Maruti (Suzuki) will be volatile because
of the Gujarat developments (related to the upcoming facility at Mehsana). Suzuki Motor
Corp, the parent of Maruti Suzuki, had recently announced plans to handle all operations
of the company's upcoming plant at Mehsana, Gujarat, with a plan to supply vehicles to
the Indian arm. Following the announcement, investors have raised concerns over Suzuki
taking profits from the Gujarat plant to Japan, which they felt should have belonged to
the Indian arm. There were also concerns about the Indian arm being converted from the
largest carmaker in the country to just a shell company of the Japanese major.
The BSE Auto Index is seen tracking the broader markets, which have shown positive
movement in anticipation of a Bharatiya Janata Party-led government at the Centre post
elections in Apr-May. The two-wheeler space is seen leading the four-wheelers going
ahead into the third week of March as well, while pointing out that the motorcycle and
scooter market has performed better than cars, primarily thanks to the rural markets.
Stocks of major automakers are expected to trade in line with the broader market, with
Maruti Suzuki India Ltd's counter seen volatile. Maruti (Suzuki) will be volatile because
of the Gujarat developments (related to the upcoming facility at Mehsana). Suzuki Motor
Corp, the parent of Maruti Suzuki, had recently announced plans to handle all operations
of the company's upcoming plant at Mehsana, Gujarat, with a plan to supply vehicles to
the Indian arm. Following the announcement, investors have raised concerns over Suzuki
taking profits from the Gujarat plant to Japan, which they felt should have belonged to
the Indian arm. There were also concerns about the Indian arm being converted from the
largest carmaker in the country to just a shell company of the Japanese major.
The BSE Auto Index is seen tracking the broader markets, which have shown positive
movement in anticipation of a Bharatiya Janata Party-led government at the Centre post
elections in Apr-May. The two-wheeler space is seen leading the four-wheelers going
ahead into the third week of March as well, while pointing out that the motorcycle and
scooter market has performed better than cars, primarily thanks to the rural markets.
