- 02 May 2024
- ICICIdirect Research
2-W segment outperforms, CV recovers on a low base of last year
News: Auto OEM sales volume for month of March 2024 came in largely positive with 2-W segment outperforming its peers by reporting both YoY and MoM growth. PV volumes were broadly steady while CV witnessed optical recovery on a low base of last year. In PV space, Maruti Suzuki sales volume were up 5% YoY at 1.66 lakh units. Tata Motors volumes were up by 2% at 48k units, while M&M is yet to report volume numbers. In 2-W pack, Market leader Hero MotoCorp reported a volume growth of 35% YoY & 9% MoM at 5.3 lakh units, whereas volumes at TVS Motors were at 3.75 lakh units up 27% YoY. Royal Enfield brand at Eicher Motors reported volumes of 82k units (up 12% YoY), while Bajaj auto is yet to release its volume numbers.
Views: In CV segment, Market leader Tata Motors reported volumes of ~30k units up 31% YoY. The volumes in CV space are down substantially on MoM basis due to seasonality impact (March month volumes are usually the highest in a year). In tractor segment, Escorts volume was broadly flattish at 7.5k units. 2-W space reported healthy volume prints and should see consequent price action in today’s trade, the OEMs however are trading ahead of their long period average PE multiples. Volume recovery at Eicher Motors was healthy and is a key positive surprise from monthly numbers as on date.
Impact: Positive