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News: Maruti Suzuki (MSIL) sales volume for the month were down 1.9% YoY at 1.72 lakh units. Tata Motors volumes were up 2.4% YoY at 47,075 units, while volumes at M&M were up healthy 31.4% YoY at 43,218 units.
Views: The volume prints at OEM’s was broadly on expected lines amidst high base and high channel inventory. Most of the players have guided for low single digit volume growth for FY25E with M&M expected to outperform peers amidst healthy orderbook, robust response received to its recent launch XUV 3XO as well as planned rise in production capacity (FY24 exit capacity at ~50k units). At MSIL, volumes in the SUV segment have been declining MoM over past 5 months with May 2024 volumes at 54k units vs. Jan 2024 volumes at 62k units. Similar trend was witnessed with EV sales volumes at Tata Motors, with May 2024 reading at 5.6k units vs. 7k units clocked in Jan 2024.
Impact: Neutral