Here’s what to expect from Maruti Suzuki and M&M to Hero MotoCorp and Bajaj Auto in August auto sales

Advertisement
Here’s what to expect from Maruti Suzuki and M&M to Hero MotoCorp and Bajaj Auto in August auto sales
BCCL
  • The Indian automobile sector is set to rebound after a historic six months of slowdown.
  • India’s largest two-wheeler manufacturer HeroMoto Corp is slated to see a 5% growth compared to the same month last year, according to brokerage Nirmal Bang.
  • Here’s what Nirmal Bang analysts expect from Maruti Suzuki and M&M to Hero MotoCorp and Bajaj Auto in monthly auto sales in August.
  • Check out the latest news and updates on Business Insider.
The Indian automobile sector is expected to witness a turnaround in August on the back of gradual normalisation in the supply chain, strong sentiments from rural and semi-urban markets and rise in preference for personal mobility.

Two-wheelers segment is expected to see a faster and quicker recovery on the back of further ramp-up in supply chains, thriving rural sentiments and rise in personal mobility needs. India’s largest two-wheeler manufacturer HeroMoto Corp is slated to see a 5% growth compared to the same month last year.

Auto manufacturers are now betting on the festive season to see the demand normalisation for cars after a six months of slowdown. A report from Nirmal Bang brokerages suggests that “the retail sales have improved sequentially on account of relatively higher demand from festive markets like Kerala and Maharashtra. Wholesales are expected to be higher than retail sales as OEMs fill the channel to build up inventory for the festive season, which remains substantially lower than normal level.”

Advertisement

However, the analysts still believe that the need for commercial vehicles “will remain dull (likely to increase sequentially though) as it remains the worst affected segment due to economic slowdown, excess capacity and limited driver availability.”

Here’s what Nirmal Bang analysts expect from Maruti Suzuki and M&M to Hero MotoCorp and Bajaj Auto in monthly auto sales in August:

Maruti Suzuki IndiaAugust 2020 sales (expected)August 2019 salesGrowth %
Domestic sales105,36797,0618.60%
Exports7,4829,352-20%
Total sales112,849106,4136.00%
Mahindra & MahindraAugust 2020 sales (expected)August 2019 salesGrowth %
Automotive28,13936,085-22.00%
Farm Equipment20,74414,81740.00%
Total Sales48,88350,9024.00%
Bajaj AutoAugust 2020 sales (expected)August 2019 salesGrowth %
Motorcycle285,156325,300-12.30%
Three-wheeler28,52363,719-55.20%
Total313,679389,019-19%
Hero MotoCorpAugust 2020 sales (expected)August 2019 salesGrowth %
Motorcycle570,576543,4065%
TVS Motor CompanyAugust 2020 sales (expected)August 2019 salesGrowth %
Two-wheeler259,041275,851-6%
Three-wheeler10,22314,604-30%
Total269,264290,455-7%
Ashok LeylandAugust 2020 sales (expected)August 2019 salesGrowth %
MHCV1,9575,349-63%
LCV3,1063,882-20%
Total sales5,0639,231-45.20%
Eicher MotorsAugust 2020 sales (expected)August 2019 salesGrowth %
VECV2,3363,462-33%
Royal Enfield (RE)47,61452,904-10%
Source: Nirmal Bang Automobile Sales Estimate – August 2020

SEE ALSO: Dollar Index is at a two-year low⁠ and here’s how much it may hurt TCS, Infosys, HCL Tech and others if it stays weak

Top stocks to watch in trade— RIL, Future Enterprises, HCL Technologies, Future Retail, ITC, Indiabulls Ventures, RBL Bank, Inox Wind and more
Advertisement