InvestorQ : Auto sales have not got a high during Diwali, do you see any logic to hold on to Tata Motors in the next 6 months??
Tushar Jambhekar made post

Auto sales have not got a high during Diwali, do you see any logic to hold on to Tata Motors in the next 6 months??

Answer
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Rutuja Nigam answered.
10 months ago


Let me talk about the auto sales first. Yes, auto sales are weak and auto companies continued to shut down plants to balance supply and demand. The dealers are also not getting the funding to hold inventory so the old method of dumping at the dealer outlet and booking sales is no longer valid. Auto sales in the last few months has been hit by a variety of factors like weak monsoon, weak rural demand, consumption postponement, limited funding and high cost.

Coming to Tata Motors, the worst surely appears to over for the time being. The positive sales numbers from JLR have also been encouraging. This could make the stock attractive in the current scenario. Also, as stated by N Chandrasekharan, the company is likely to focus more on futuristic technologies like driverless cars. But this could take some time to actually play out and so the focus should be only for the long term of 3 years at the bare minimum.