Auto Stocks Outlook: Sector Remains Positive Despite August Sales Concerns

Auto stocks remain in focus despite mixed August sales and concerns around supply chains and exports. Gaurang Shah, Sr. VP, Geojit Investments, remains positive on the auto sector, highlighting opportunities across two-wheelers, three-wheelers, passenger vehicles, tractors, agricultural equipment and EV plays. He believes investors should not overreact to month-on-month sales fluctuations and instead focus on quarterly, half-yearly and annual performance to assess long-term fundamentals. Shah also points to India’s Free Trade Agreements and Bilateral Trade Agreements as potential growth drivers for auto exports. With demand holding up and strong fundamentals intact, he believes the auto sector remains a key investment opportunity.