Where within the auto space do you believe companies can capitalise on the overall EV momentum?
If you would like to play automobiles on the EV investment theme, then the simplest pick has got to be Tata Motors due to the JLR connection. they’re the simplest equipped in terms of technology and know-how to launch electric vehicles. Also other Tata Group companies are pitching in trying to line up their entire electric vehicle environment and ecosystem or charging also as batteries. Amongst all the auto companies, two-wheelers also as four-wheelers, Tata Motors could also be first the blocks in terms of EV strategy. Anyway, they need the simplest selling model within the EV space which is one stock to seem at on a medium to future basis If you actually believe that the EV story will devour and gain more traction .
From an economic standpoint, once normalcy returns, we are still quite positive on Maruti also as Eicher Motors. We like Maruti because demand for private transportation will still remain very strong and tons of entry level models are there with Maruti which benefit them because tons of first-time buyers will check out stepping into Maruti instead of a number of the opposite premium models.
What we like about Eicher Motors is that the incontrovertible fact that a premiumisation trend has gathered momentum and Eicher Motors features a very exciting range of latest models and that they have also expanded their distribution network significantly. the advantages of both these factors will accrue over subsequent two-three years approximately . So within the auto space, as far as EV strategy cares it’s Tata Motors. aside from that, it’s best to remain with market leader Maruti and Eicher Motors when it involves Royal Enfield and therefore the premium motorcycle segment.