Bearish on auto sector: Motilal Oswal Asset Management

In a chat with ET Now, Manish Sonthalia, VP & Fund Manager, Motilal Oswal Asset Management-PMS, shares his views on banking stocks.

ET Now: Autos will give out sales numbers in a few days, anything you like from that sector?

Manish Sonthalia: The numbers are not very impressive. The medium and heavy commercial vehicles are clearly in a downtrend. The first quarter MHCV segment has seen 11% drop in the industry as a whole. Two wheelers again are growing at something like 7% to 9% that is the brightest spot that you can find in the auto space. Companies which are catering to the LCV segment, something of them likes of Mahindra’s or Baja Autos and the Hero Honda’s of the world could be a better suit at this given point in time. I am not so gung-ho about Maruti, they have their problems galore. Even though numbers may be decent if you compare it on the Y to Y basis or a month on month basis, you would not see too much of a disappointment out there, but MHCV is something which clearly remains on the back foot at his moment.