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Signs of Revival in the Auto Sector
Sep 26, 2019

In the euphoria of the government's tax rate cuts, an important announcement went unnoticed.

The road transport and highways ministry has proposed a huge increase in re-registration of vehicles which are more than 15 years old.

The proposed hike will be implemented from July 2020. The policy change is aimed at reducing pollution by scrapping older vehicles on the road.

This might come as a welcome relief for automakers who have seen severe fall in sales over the past 1 year.

This is also reflected in the share prices of listed auto players. The BSE Auto index is down 35% from its peak in January 2018.

The upcoming festive season and the recent policy measures might just be the trigger needed to revive the sector.

A leading auto player makes it to my list of 7 stocks to buy.

I believe, rising disposable incomes and aspirations of India's youth, will be the key trends benefiting this market leader in the long run.

Data Source: AceEquity

This Chart Of The Day was published in The 5 Minute WrapUp - My Top 7 Safe Stocks Will Benefit from More than Just the Corporate Tax Cut

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