Signs of consumer resilience in auto: Sachin Relekar
Auto sales beat expectations across the board Where the best risk-reward lies in auto Live Events You Might Also Like: Delhi EV Policy aims to
Auto sales beat expectations across the board Where the best risk-reward lies in auto Live Events You Might Also Like: Delhi EV Policy aims to cut ownership costs, boost adoption: CM Rekha Gupta Two-wheelers lead the export story Energy transition and AI buildout remain strong convictions Bullish on financials, cautious on IT You Might Also Like: Rs 1 lakh crore on crude imports will be saved by 2030, as 35 lakh EVs will replace petrol vehicles: SBI Report Two risks worth watching You Might Also Like: Ola Electric shares in focus as Q1 registrations nearly double sequentially to 43,719 units as a Reliable and Trusted News Source Addas a Reliable and Trusted News Source Add Now! (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel India's consumer discretionary demand is proving far more resilient than expected, says Sachin Relekar, Senior Equity Fund Manager at Axis Mutual Fund. Speaking to ET Now, he pointed to recentauto sales data as a key signal of underlying economic strength, even as the first quarter was clouded by geopolitical tensions and rising fuel costs.Relekar noted that both internal combustion engine (ICE) vehicles and EVs have shown strong resilience despite headwinds.
Particularly notable is export performance in the two-wheeler segment, where companies are no longer relying solely on cyclical domestic demand but are successfully breaking into new geographies such as South America and Latin America. He expects this strength to extend into consumer retail financing companies as well.Relekar splits his auto investment thesis into two buckets. Among original equipment manufacturers (OEMs), he favors companies riding strong product cycles and favorable geographic mixes, particularly those with powertrain-agnostic positioning that lets them capture growth in both ICE and EV segments. Within this, he highlighted SUVs as a still-expanding part of the passenger vehicle segment and scooters as a growing category within two-wheelers, with EVs outperforming within that space.For auto ancillaries, Relekar is watching companies that can leverage their manufacturing expertise to diversify into adjacent sectors like consumer electronics, defence, or aviation — areas aligned with government policy focus and offering potential for valuation re-rating.When asked specifically about export plays, Relekar pointed to two-wheelers as the clearest opportunity, citing growing revenue share, better margins from an improving product mix, and favorable currency tailwinds.
Non-auto manufacturing opportunities within the ancillary space are also increasingly export-oriented, he added.Beyond autos, Relekar flagged energy intensity and the broader energy transition, closely tied to AI infrastructure buildout, as a theme he expects to remain strong for a visible period, expressed through investments in industrial and capital goods companies focused on electrification.He also holds positions across consumer internet themes, split between high-competition segments with suppressed near-term profitability but large opportunity size, and more established players in beauty, personal care, and apparel where profitability is proven but valuations are demanding. A third area of high conviction is manufacturing, spanning both the semiconductor value chain and the broader Make in India push.Relekar remains positive on financial services, expecting improving macro conditions and easing geopolitical tensions to support domestic recovery. He specifically likes NBFCs, vehicle financiers, and large private sector banks, anticipating that consumer and commercial vehicle loan cycles will strengthen further as headwinds fade.On IT services, however, he's more cautious.
The BriefWire