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Auto Sectors (2W): Muted volume prints for major players

News: The 2-W MoM volume growth across players was limited to single digit (ex Royal Enfield) in October 2021. Hero MotoCorp (HMCL) posted 3.3% increase to 5.48 lakh units while Bajaj Motors volumes stood higher by 8.4% to 3.91 lakh units. Royal Enfield brand at Eicher Motors was the outlier and reported 31.6% growth to 44,133 units.

Views: The 2-W space continues to lag amid demand worries posed by sharp acquisition and ownership cost increases over the past few months (price hikes, fuel cost increase), particularly in the entry segment. Bajaj Auto's exports performance lagged healthy 14.3% growth in domestic sales while Royal Enfield volumes recovered from a lower base.