Decrease in demand in all segments

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New Delhi: December ends on a muted note for the auto sector, with key segment sales likely to grow by around 1-3 per cent on a year-on-year basis, analysts said.

Nirmal Bang in a note said that in two-wheelers, the number of inquiries and customers is below average and has disappointed dealers, who are seeing limited visibility on demand growth in the near term due to weak consumer sentiments.

“While private vehicles (PVs) are witnessing a gradual month-on-month recovery, tractor dealers are showing signs of decline due to higher base. Commercial Vehicles (CVs) are holding relatively well with demand recovery on MoM as well as YoY basis. While rising fuel prices and relatively cautious approach from financiers continue to be pain points in the CV segment, dealers are confident about posting strong numbers in the coming quarters,” Nirmal Bang said.

nomura Two-wheeler sales in India are growing at 1 per cent as it said inventory levels remain high in 6-7 weeks. The demand is likely to be impacted by higher vehicle prices and the upcoming launch of several electric models, the statement said.

Companies like Hero MotoCorp have indicated a further hike of up to Rs 2,000 from January on account of rising commodity prices.

In the case of passenger vehicles, Nomura thinks industry-wide volumes are down 1 percent.

“We expect Suzuki’s domestic PV volumes (e.g., Toyota and LCV) to be down 13 per cent annually. The company’s overall volumes are expected to decline by 5 per cent annually on higher exports.”

The company’s CNG car demand continues to be strong; However, the increasing preference for SUVs remains a major headwind in our view in the near future. The UV volume of MM may increase by up to 25 per cent in YoY depending on the low base and new launches.”

in cv industry,

Strong demand for Intermediate Commercial Vehicles (ICVs)/tippers and replacement demand for MAVs is expected to improve volumes on a bullish note.

Emkay expects domestic business for M&M to grow at 11 per cent, 8 per cent year-on-year

Motor-Volvo Eicher Commercial Vehicles declined by 5 per cent for Tata Motors and 20 per cent for Ashok Leyland. The launch of the CNG variant should support further volumes for Ashoka, it said.

In the personal vehicle space, Emkay estimates domestic volumes to decline by 30 per cent for Tata Motors, 24 per cent for M&M and 18 per cent for Maruti Suzuki. “The production is expected to improve further with better supply of chips,” the company said. Considering the strong order book, the discount is less as compared to last year.

In the two-wheeler space, Emkay expects domestic volumes to decline 15 per cent annually for Eicher Motors-Royal Enfield, 13 per cent for Hero MotoCorp and 7 per cent for TVS Motor, while Bajaj Auto will see a marginal 5 per cent decline. increase can be seen. ,


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