Here's how Bernstein analysts view India's auto sector.
According to the brokerage, PV volumes have grown at a CAGR of 4% from FY19 to FY24 in the country's auto sector, sharply lower than 8-9% in the past.
According to the brokerage, PV volumes in the country's auto sector have neither entered a frothy phase nor have reached an absolute peak.
According to the brokerage, without an entry-level recovery, volumes in the country's auto sector are likely to be in low single digits.
According to the brokerage, the volumes may expand to high single-digit levels by FY25 or FY26 as the macroeconomic situation stays healthy.
The brokerage continues to prefer Maruti Suzuki India over M&M.
The auto major stacks up well on the inventory front, according to the brokerage.