“From the two-wheeler space, we are positive on Hero Motocorp as well as TVS Motors, we prefer these two companies over Eicher Motors and Bajaj Auto,” said Jay Kale, Vice President Research, Elara Capital in an interview with CNBC-TV18.

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Most of the companies have stocked up inventory with dealers in anticipation of good festive season.

“We have seen August and September retails positively surprising. We need to track the festive season closely and if festive is through then we will see the momentum continuing,” he said.

Kale said the stocks were pricing in growth in retail sales during the festive season, and could come under pressure if the sales growth disappointed.

In the commercial vehicles space, Kale is bullish on Ashok Leyland.

“In my view passenger vehicle would be faring a tad better than two-wheelers,” Kale said.