StanChart predicts volume growth for 2-wheelers by January

Amit Kasat of Standard Chartered Securities predicts that the volume growth of two-wheeler vehicles will pick up from January onwards. “Inventory will not be a big issue for the two-wheeler industry going forward because it gets readjusted very fast in their production schedules,” he said in an interview with CNBC-TV18.
Meanwhile, India’s largest two-wheeler maker Hero MotoCorp’s second quarter net profit declined 27% from a year ago (down 28% sequentially) to Rs441 crore (US$81 million). The decline was attributed to an overall slowdown in sales. StanChart Securities, whose sell rating on this stock targets a price of Rs1, 800 (US$33), is expected to lose its market share to other key players like Honda and Bajaj for at least six months. (October 25, 2012)