- 02 Jun 2023
- ICICI Securities
2-W space reports healthy MoM numbers for May 2023
News: Volumes at TVS Motors were at 3.2 lakh units up 8.3% MoM. Royal Enfield brand at Eicher Motors reported 5.9% MoM growth at 77,461 units, while market leader Hero MotoCorp reported volume growth of 31.1% MoM at 5.19 lakh units. Bajaj auto volumes grew 6.8% MoM at 3.07 lakh units.
Views: In the 2-W space volume prints were in line with our expectation tracking healthy retails, with Hero MotoCorp surprising positively with double digit growth and reaching new highs in recent past. TVS motors continued its growth momentum and reported healthy monthly EV sales at ~Rs17.9k units (highest in recent past), however we expects EV volumes to soften temporarily post reduction in FAME II subsidy. In separate exchange filing TVS motors also informed about hiking prices of its EV scooters by Rs17k-22k. Revival in exports (single digit MoM growth) was witnessed across OEM’s in the 2-W space.
Impact: Positive