Positive on auto space: Prateek Agarwal

Prateek Agarwal, Head Equities, Bharti AXA Invest Manager, in a chat with ET Now on Auto space.

Do you think this sort of strong volume buzz that we have seen in the auto space is here to stay for some more time to come?

We stay positive on the auto space. Frankly it does not happen too many times that a lot of the four wheelers command a waiting period of more than a month and that is the order of the day for several models as of now, so the demand scenario remains robust.

What is really happening is that since the demand is so strong while the main auto companies are able to produce, it is the component guys who are lagging behind a bit and at the end of the day, it is a huge logistic thing that goes into make a car and even if one small component is not there, 2 lakh to a 30 lakh cars cannot be on the road.

So some bit of scale up there has to happen, one reason why we are slightly positive on the auto component space in terms of macro as well, so yeah, the space has had its run, it may pause for sometime but all said and done, this is a space, which should continue to perform slightly better than the market going forward as well.