Industry Update Back
Auto mobiles: Healthy retails, discounts to drive 2W/PV wholesales

  • Our channel checks   indicate healthy retail growth (10-15%) in the 2W and PV segments, led by festive demand and positive rural sentiment,  which should drive   wholesales for September. CV segment growth is expected to be largely led by LCVs and ICVs. Also, there have been no indications of moderation in discounts in the CV segment.
  • Our interaction with mass market 2W channel partners indicates healthy growth,  led by strong retail demand from key states. Good monsoon and an increase in crop realizations have lifted sentiment in rural/semi-urban areas. Hero MotoCorp (HMCL)  is witnessing ~10% retail growth in key states,  while TVS Motor (TVSL) and HMSI are outperforming the industry,  with growth in excess of 15%.  However, Bajaj Auto's (BJAUT)  retail volume growth for key markets is at 7-9%, lagging other OEMs. On the PV front, MSIL is witnessing retail growth in excess of 15%,  while Mahindra & Mahindra's (MM)  volumes are increasing at ~8-10%