The festive season this year is likely to add sparkle to auto stocks, according to Jay Kale, Executive Vice President at Elara Securities, with companies like Hero MotoCorp, Bajaj Auto, TVS, Escorts, Eicher, and Maruti Suzuki expected to outperform.

“It is a play on the expectation that the festive season is expected to do well led by rural recovery and these are the plays on the rural side of things with tractors also being there, as well as the other two-wheeler players have also kind of outperformed the expectation of a good festive,” Kale said in an interview with CNBC-TV18.

He highlighted the big changes in market share for electric two-wheelers. Ola is likely to lose some market share, while traditional companies are gaining speed in the electric two-wheeler market.

Also Read: How to make electric vehicles truly green — here are the challenges and solutions

Legacy players like Bajaj Auto and TVS Motors are ramping up their electric vehicle (EV) plans and distribution networks, putting pressure on new entrants like Aether and Ola Electric.

Bajaj Auto has become the second-largest player in EV two-wheelers in Maharashtra and is also expanding its compressed natural gas (CNG) offerings.

“So, we would like to play this through TVS and Bajaj from our perspective,” added Kale.

Also Read: Auto component maker Sterling Tools eyes strong growth in the EV business

For more details, watch the accompanying video

Catch all the latest updates from the stock market here