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India's auto market is estimated to see strong wholesale volume growth for August across multiple segments, despite festive season and rising fuel and vehicle prices, as per a report by brokerage house Ananad Rathi.
Ahead of the August monthly sales data, the brokerage sees healthy retail volumes, supported by GST rate rationalisation and a low base in passenger vehicles (PV). It further highligted, the inventory build-up was more "notable" last year in two-wheelers (2W) and tractors. "Strong double-digit growth to continue across most segments," it said. Passenger vehicle (PV) volumes are likely to have grown in the mid-30 per cent range, supported by inventory build-up and strong retail sales. Volumes are estimated to have risen around 35 per cent year-on-year, led by Tata Motors with a 49 per cent increase, followed by M&M at 45 per cent, supported by a lower base, Maruti Suzuki at 43 per cent and Hyundai at 11 per cent. Discounts also increased on a month-on-month basis, the brokerage house noted. Commercial vehicle (CV) volumes are expected to have increased in the mid-20 per cent range, driven by replacement demand from small transporters following the GST cut, higher freight demand and a pick-up in infrastructure activity. "Ashok Leyland's sales volume is likely to have risen by 31 per cent, followed by Tata Motors (25 per cent), M&M (22 per cent) and EIM-VECV (20 per cent)," the report noted. Two-wheeler (2W) volumes are estimated to have grown in the mid-teens or 15 per cent YoY, supported by healthy retail sales despite a high base with TVS Motor clocking the highest growth. "TVS Motor's 2W sales volume is likely to have risen by 25 per cent, followed by Hero MotoCorp (11 per cent), Royal Enfield (9 per cent) and Bajaj Auto (3 per cent). Further, 2W exports (listed OEMs) are likely to have risen in double-digit (~33 per cent)," it noted. However, the surge may not be reflected in tractor volumes, which are likely to have increased by only around 4 per cent year-on-year, constrained by a high base and a weaker monsoon. "Sales volume of M&M is likely to have grown by 6 per cent, while Escorts Kubota to fell slightly by 1 per cent," it said. (ANI)
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