- 02 Aug 2024
- ICICI Securities
2-W space reports mixed volume prints for July 2024
News: 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.
Views: 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. We expect 2-W space to achieve double digit volume growth in FY25E, amidst forecast of normal to positive monsoons 2024, increased government spending on rural economy and various state & centre government schemes benefitting the low-income strata group.
Impact: Positive