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MOSL: AUTOMOBILE | May-17 Sales Estimates-MSIL to drive PV growth, 2W dispatches to be strong-CV sales to be weak on shortage of BS-4 components

​AUTOMOBILE | May-17 Sales Estimates: MSIL to drive PV growth, 2W dispatches to be strong; CV sales to be weak on shortage of BS-4 components

• ​While PV to continue its growth momentum led by MSIL and outperform the auto industry, 2W volume is also expected to be strong led by increase in retail off-take due to marriage season. CV sales is expected to be weak YoY due to pre buying impact in Mar-17 coupled with shortage of BS-4 components to also impact supply.
  
• Key highlights:
  
• -Maruti Suzuki's domestic dispatches growth will be better than PV industry in May-17 as we expect MISL to report ~21.6% growth in its overall volumes. Our channel check indicate double digit growth in retail off-take while demand for Baleno and Brezza continue to remain robust as these models still enjoys healthy waiting period of 5-6weeks.
  
• -Tata Motors PV segment is expected to maintain strong growth momentum driven by Tiago and complimented by newly launched Tigor.
  
• -In the 2W segment, we expect HMCL volume to increase by ~9.8% YoY (+8.2% MoM) led by strong retail off-take due to ongoing marriage season. TVSL too is likely to record ~8.9% YoY (+7.8% MoM) increase in volumes led by strong growth in its scooters and motorcycles portfolio.