June auto sales: Analysts see Maruti, Hero Moto making a strong comeback

In the past two months, the Nifty Auto index has outrun the benchmark index by surging nearly 13 per cent till Monday as against 4.5 per cent rise in Nifty

Further ease in lockdown, attractive financing schemes, and expectations of normal monsoon could support automobile companies to build-on the demand recovery seen in May, and post improved sales figures on a monthly basis for June 2020, believe analysts.

“The Auto sector has been among the best performing sectors in recent months. This is attributed to the kick-start of the recovery process post the lifting of the lockdown. We are witnessing quick recovery in tractors, followed by two-wheelers and passenger vehicles, but commercial vehicles’ segment is yet to see any recovery,” wrote Jinesh Gandhi and Vipul Agarwal, research analysts at Motilal