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MOSL: AUTOMOBILES-Healthy festive and rural demand likely to drive PV/2W sales

AUTOMOBILES: Healthy festive and rural demand likely to drive PV/2W sales

 

• Our interaction with the leading channel partners indicates strong demand momentum across segments in March 2018, supported by festive demand (Gudi Padwa and Chaitra Navratri) in the key northern, central and western markets.
• CV wholesales are expected to remain healthy, despite a high base of last year, as demand continues to outpace supply. PV retails have been healthy in the month, led by MSIL - new Swift bookings stand at ~95k units, with average waiting period of ~3.5 months. In the 100-125cc motorcycle segment, demand remains robust, with average retails growing at more than 15%.

 Key highlights:

• CV wholesales are expected to remain healthy, as demand continues to outstrip supply in key markets, partially due to supply shortage.
• We expect AL's wholesales to grow 12% YoY to 20.9k units, with the HCV and LCV segments likely to grow 6.2% YoY and 38.8%, respectively. TTMT and VECV's CV sales are expected to grow by 18.1% and 13.1%, respectively.
• In the PV segment, MSIL's overall dispatches are expected to grow 14.8% YoY to 160.5k units. Compact and UV segments continue growing robustly by 21.8% and 16.8%, respectively.
• Tata Motors' PV segment is expected to grow 28.3% YoY, led by its new SUV 'Nexon', as well as other new models like Tiago, Tigor and Hexa.
• M&M's volumes are expected to increase 7.6% YoY to 81.1k units, with tractor and UV sales likely to grow by 13.8% and 5.7%, respectively.
• In the 2W segment, BJAUT's overall dispatches are expected increase 27.7% YoY to 348k units, led by growth of 29% in domestic sales and 25.5% in exports.