- 06 Sep 2022
- ICICIdirect Research
SECULAR GROWTH TREND EXPECTED IN PV SPACE AIDED BY STRONG ORDER BOOK
News: As per media sources, pending order book in passenger car segment has crossed 10 lakhs units across OEMs tracking strong pent up demand amid chip shortage and exciting launches in the UV space. Out of total order backlog, Mahindra’s new Scorpio N alone have booking of 1 lakh units. Further, Hyundai and Kia have a pending order book of 1.25 lakh units each. Market leader Maruti Suzuki has a pending order book of over 3 lakh units.
View: This comes as a positive development for the sector and could ensure double digit volume growth in the near term i.e. FY22-24E. We expect domestic PV sales at 37 lakh units in FY23E i.e. 20% YoY growth. Given the under-penetrated nature of the PV segment domestically amid rising per capita income, the PV space could witness a secular growth trend with key beneficiaries being Maruti Suzuki, M&M and Tata Motors in our coverage universe.
Impact: Positive.