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- 17 Apr 2023
- ICICIdirect Research
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WHOLESALE DISPATCHES WITNESS GROWTH DOUBLE DIGIT GROWTH IN FY23
News: Siam on Friday reported its monthly as well as annual wholesale dispatches for FY23 wherein total domestic wholesales are seen touching 2.1 crore, up 20.4% YoY, with exports being impacted due to global uncertainties and down 15.2% YoY at 47.6 lakhs (primary led by 2-W & 3-W space). Notably, share of SUV has increased to 52% of domestic PV sales in FY23 from 49% in FY22. Also, scooterisation, as a trend, has picked up pace with scooters now constituting 33% of 2-W sales vs. 30% a year prior. On the market share front, M&M and Tata Motors were key gainers in the PV space while Ashok Leyland and VECV (Eicher Motors) were key gainers in the CV space
Views: Within segments, PV attained new high domestically at 38.9 lakh units up 26.7% YoY. M&HCV space witnessed 34.3% YoY growth at 9.6 lakh units (M&HCV up ~49.2%; LCV up ~26.8%) and is well poised to attain a new high in FY24E (previous high of 10.1 lakh units in FY19). The 2-W segment also saw demand recover and was up 16.9% domestically at 1.6 crore units, well below pre-Covid levels. On the 3-W ,front domestic market witnessed pent up demand and rose 87% YoY at 4.9 lakh units but exports remain muted and were down 27% YoY at 3.7 lakh units in this space. Going forward, we expect volume growth to taper for the domestic automobile space, albeit on a high base but continue to remain positive on CV & PV space amid increased infra spends and underpenetrated car category in India, respectively
Impact: Neutral