Hero MotoCorp Ltd (HMCL) has been the best-performing auto stock over the last three months, gaining over 17 per cent during this period. Multiple tailwinds, especially on the rural front, are expected to boost its volumes. In addition to the demand drivers, new launches too should help drive growth both in the commuter and premium motorcycle categories.
However, given competitive pressures, the company has been losing share to competitors in the mid- to premium segments. In addition to this, what could put near-term pressure on HMCL’s sales are the new norms related to anti-lock braking system (ABS) to be implemented