From Maruti to Tata Motors, from Hero MotoCorp to TVS — here’s what June auto sales are likely to look like
- Models such as the top-end Maruti Baleno and Swift, Tata Altroz and Nexon, Mahindra Thar, and Bolero have waiting periods ranging from two to 10 months.
- Top exporters of motorbikes like Bajaj Auto and Royal Enfield-maker Eicher Motors are likely to clock solid growth, but Hero MotoCorp may see its sales decline.
- Commercial vehicles like trucks are closely linked to broader economic activity, and, hence, the recovery may be 50%-70% of normalised sales.
|Company||Estimated car sales growth in India in June (YoY)||Share price change in last one month|
|M&M -- Utility vehicles||+31.9%||-2.35%|
|M&M -- Cars and vans||-57.3%||-|
Source: ShareKhan, Google Finance
AdvertisementAll three car makers had cut production since April 2021 when the second wave of COVID-19 infections had started to overwhelm the world’s sixth largest economy, and the fifth largest market for automobiles. While both production and actual sales have been slow for a while, the demand is starting to pile up.
“Models such as the top-end Maruti Baleno and Swift, Tata Altroz and Nexon, Mahindra Thar, and Bolero have waiting periods ranging from two to 10 months,” said a ShareKhan report dated June 28. That has led to expectations that price hikes may be in the offing.
The trend in two-wheelers is expected to be mixed. Top exporters of motorbikes like Bajaj Auto and Royal Enfield-maker Eicher Motors are likely to clock solid growth, but Hero MotoCorp may see its sales decline. The lack of exports, and continued focus on Indian customers, has been an issue for Hero for a while now.
|Company||Estimated two-wheeler sales in June (YoY)||Share price change in last one month|
|Bajaj Auto -- India sales||-31.8%||-0.62%|
|Bajaj Auto -- Exports||70.6%||-|
Source: ShareKhan, Google Finance
Both Bajaj Auto and TVS Motor export both two wheelers and three wheelers. TVS Motor, for instance, is expected to clock an 80% growth in three-wheeler sales at a time when the sale of auto rickshaws in India has been slow as schools and offices have only partially reopened. It’s the growth in exports that will drive revenue for both TVS and Bajaj, whose commercial vehicle (mostly three-wheelers) sales are estimated to grow 61%.
Commercial vehicles like trucks are closely linked to broader economic activity, and, hence, the trends are likely to be divergent based on the recovery in different parts of the country and the demand for each company in that region. “We expect a 50%-70% of normalised sales in the commercial vehicle segment,” the report said.
|Company||Estimated commercial vehicle sales in June (YoY)|
|Escorts (shares up over 3% in last one month)||-21.7%|
|Ashok Leyland -- light commercial vehicles (stock up 1% in last one month)||-8.5%|
|Ashok Leyland -- medium and heavy commercial vehicles||+231%|
See Also -
KIMS IPO: Stock listed at over 20% premium, loses initial gains after soaring to ₹1059 per share
Popular on BI
- Elon Musk sparks another Shiba Inu rally ‘to the moon’ — other Shiba coins follow suit
- Elon Musk’s puppy, a new strategy to burn tokens, and altcoins playing catch up — the perfect storm for cryptocurrency Shiba Inu to skyrocket
- Apple M1 Pro and M1 Max vs M1: Here’s what Apple improved with its new custom chips
- Best gaming mouse for battle royale games in India
- Best tablets for professional use in India
- Ethereum may offer the best returns, but investors have been pulling away over the last two weeks
- Google starts starts testing new safety section for apps, feature to go live in February 2022
- Horlicks and Boost maker HUL sees slowdown in food segment in the last three months