Maruti will continue to face the pressure in our view: Sonam Udasi

In a chat with ET Now,SonamUdasi, Head of Research, IDBI Capital , shares his views on Maruti Suzuki.

ET Now: What is your call on the auto space and Maruti in particular?

Sonam Udasi: Frankly Maruti was simply going up because of the Yen effect so there was a feeling that because of the yen, there is nothing in the core performance if you see in the last three-four quarters. The auto space is in real dire straits on the ground even the diesel variants are not doing as well.

Swift Dzire and the other cars that were on waiting list can now be bought off the block so it clearly says that the demand environment for Maruti is not going to be good and because of that any margin up tick that was expected that will also be not there because there is no pricing power. So that is what is playing out and Maruti will continue to face the pressure in our view.