Prefer Tata Motors, Maruti Suzuki in auto space: Deven Chosky, MD, KR Chsokey Securities

In an interview with ET Now, Deven Choksey, MD, KR Choksey Securities, shares his views on auto space:

ET Now: We are bracing for yet another gap down start but let us talk about the auto sales numbers. Do you think there could be any bright spots there, Darshan, says definitely some companies will report good numbers this time too?

Deven Choksey: Certainly, as Darshan summarised very nicely the two wheelers are likely to be more on a sluggish side, the rural demand is still not picking up and that is where we are likely to see the muted performance coming in from that side. But, the important point is that the passenger vehicle segment wherein the new launches would probably (8:53) numbers particularly from Maruti in the listed space where we are likely to see the contribution coming in from the new launches side.

So, certainly that is sounding relatively more assuring and positive at this point of time. Within the commercial vehicle space, I, gather that the light commercial vehicles are probably having slightly better time compared to the HCVs even though in some of the cases the HCVs, due to the implementation of the regulations are seeing some amount of growth but generally the light commercial vehicle segment is likely to show better numbers.

Therefore, given this kind of a scenario I have no doubt in my mind that the companies like Tata Motors, companies like Maruti would remain probably in your preferred list vis-à-vis the other companies in the auto pack.