TMS Ep78: SUV craze, OTT industry, auto stocks, Model Tenancy Act

Indian roads have seen quite a change in the last few years. The size of cars dotting it has steadily grown since the last Maruti800 was rolled off the production line from its Gurgaon factory in 2014. Now, it would be quite a sight to see Toyota Fortuner overtaking a humble Maruti-800. So, why more and more Indians are now preferring SUVs -- some of them as bulky as mini trucks-- over hatchbacks and sedans? We examine the causes for the dramatic shift in consumer preferences towards SUVs. 

Passenger vehicles are not the only area where consumer preferences saw a dramatic shift. Media and entertainment sector is also one of them. India’s OTT industry is growing like never before now, against the backdrop of pandemic. The regional OTT platforms have also contributed to the rise.   

From OTT platforms, let us see what is happening on the market front. Investor holdings in auto pack were handsomely rewarded yesterday even as the monthly sales figures seemed to be a mixed bag. Passenger vehicle OEMs’ attempt, for instance, to catch up to the demand for popular models was impacted by production cuts, while two-wheeler OEMs have been able to pare down high channel inventories post festive season. Yet, entry-level demand trends across two-wheelers and passenger vehicles remain weak. And OEMs’ hope to stoke consumer sentiment with new launches remains elusive. So, should you chase this rally in the auto stocks? 

The ongoing trend suggests that the markets are undeterred by the onset of another wave of pandemic. But, Omicron may unsettle the rental housing market, which was on a recovery path. The government had cleared the Model Tenancy Act (MTA) last year to regulate the rental market and unleash the latent potential in the real estate sector. Find out about this new Act and more in this episode of the podcast.