Two wheeler players reported another strong month in August -TVSL led the pack with 47% YoY growth, while HMSI/HMCL grew 26%/21% YoY. Notably, scooters continue to do well for HMSI (+48%), but motorcycle growth has slowed in the past two months to 6-7% YoY from high double-digit growth earlier.
Four wheeler growth has moved into positive territory since May. In August as well, 4W volumes rose 18% YoY for reported companies, led by the car segment. Notably, the leaders remained on top with MSIL/Hyundai/Honda growing29%/19%/ 88% YoY. Most other players reported declines with MM/TTMT/Ford/ Toyota/GM at 11%/5%/15%/7%/37%.
In CVs, MHCV sales looked up with TTMT/AL/MNAL up 11%/18%/ 27% YoY, while LCV trends were mixed (TTMT/AL/MM pickup 35%/14%/5%). Tractors sales were dull (MM/Escorts 1%/ 18%)
"We expect auto volumes to remain resilient due to inventory push during the festive season, pick-up in consumer sentiments and return of first-time buyers, soft base and new launch sales. Top picks are HMCL, MSIL, TTMT," said Religare Institutional Research.
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