Automakers are anticipated to have a superb begin to FY23 which is clear from analysts’ expectations of progress in April 2022 volumes. True, the low base of final yr aids in quantity progress. However the segments are poised for restoration.
Two-wheeler (2W) makers, who have been impacted by subdued home demand in FY22, are prone to see a rebound helped by the continued marriage ceremony season and improved rural sentiments on the again of rabi crop harvesting. Additionally, elevated choice for private mobility augurs effectively for the 2W phase. Additional, with latest incidents of electrical 2Ws catching hearth, ICE (inside combustion engine) automobiles stand to profit. Nevertheless, the elevated gasoline costs would proceed to stay a threat as whole value of possession will increase.
Accordingly, analysts at Sharekhan anticipate 2W volumes of Hero MotoCorp Ltd and TVS Motor Co. Ltd to extend by 29% and 32% year-on-year (y-o-y) respectively in April 2022. Bajaj Auto Ltd is estimated to report a ten% y-o-y decline in 2W volumes because it continues to face chip scarcity.
Three-wheeler (3W) gross sales would see elevated traction as faculties and places of work reopen. Bajaj Auto and TVS Motor are prone to report 12% and 17% progress in 3W volumes in April, based on Sharekhan analysts.
Whereas the passenger car (PV) phase is seeing elevated demand, provide chain points are impacting gross sales. As per Motilal Oswal Monetary Providers’ analysts, Maruti Suzuki India Ltd’s volumes in April are anticipated to stay flat with a drop in home gross sales offset by progress in exports. Tata Motors Ltd’s PV phase is prone to see 62% progress whereas Mahindra & Mahindra Ltd (M&M) is anticipated to report 40% progress.
CNG (compressed pure gasoline) automobiles appear to be the popular variant in PV phase amid increased gasoline costs.
That is additionally true within the case of business car (CV) phase the place Ashok Leyland Ltd’s lately launched CNG portfolio in intermediate CV phase is seeing elevated momentum, mentioned analysts at Motilal Oswal in a report on 27 April.
“Demand for cargo phase operators with out long-term contracts has been impacted by excessive diesel costs, whereas demand from these with long-term contracts and from the infrastructure phase stays buoyant,” added the Motilal Oswal report.
Ashok Leyland and Tata Motors’ CV volumes are anticipated to develop by 102% and 145% y-o-y respectively.
In the meantime, demand for tractors continues to stay muted. Owing to the excessive base, M&M tractor volumes in April are anticipated to lower by 3% whereas Escorts Ltd’s volumes are estimated to extend by simply 1.7%, based on Sharekhan analysts.
Supply: Live Mint