Mumbai: Foreign brokerage CLSA sees few reasons to turn optimistic on the auto space despite sharp corrections in the sector stocks given continued weak demand and big regulatory headwinds.

The brokerage has negative ratings on 70 per cent of Indian auto stocks under its coverage. A survey of 27 dealers across three key Indian states that see an early start to the festive season revealed that majority of the two-wheeler and passenger vehicle dealers continue to see weak demand and decli .......ET