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Auto Volumes July’24: Muted Show with some OEM specific green-shoots

ICICIdirect Research 02 Aug 2024 DISCLAIMER
  • 2-W space reported neutral to positive volume prints for July 2024. Volumes at market leader Hero MotoCorp came in at 3.7 lakh units, down 5.4% YoY while it stood at 3.4 lakh units at TVS Motors, up 8.8% YoY. Royal Enfield brand at Eicher Motors reported 8% YoY de-growth at 67,265 units, while Bajaj auto reported a growth of 10.7% YoY at 2.98 lakh units.
  • Bajaj Auto significantly outperformed its peers primarily led by rise in domestic volumes, while volumes at Eicher Motors were tepid. Product mix however improved at Eicher Motors with company selling more of >350cc segment bikes domestically. Notably, Hero MotoCorp and TVS Motors reported healthy YoY growth in export volumes.
  • PV segment reports mixed volume prints for July 2024. Maruti Suzuki (MSIL) sales volume for the month were down 3.9% at 1.72 lakh units. Tata Motors volumes were down 5.7% YoY at 44,954 units, while volumes at M&M were up healthy 15% YoY at 41,623 units. M&M outperformed its peers in PV space.
  • CV segment reports muted volumes prints for July 2024. Market leader Tata Motors (TML) reported CV volumes of 27,042 units down 18% YoY. VECV volumes at Eicher Motors were up 12.7% YoY to 6,622 units while volumes at Ashok Leyland de-grew 7.6% YoY at 13,928 units.
  • Tractor Space reports steady volume prints for July 2024. M&M reported a volume growth of 8% YoY at 27,209 units while Escorts reported a volume growth of 3.6% YoY at 5,769 units. On a steady high base, tractor volumes are anticipated to grow at lower single digit in FY25E at ~5%.
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