Sales of MHCVs and Tractors in India Anticipated to Improve After Festive Period: Report
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New Delhi, Dec 27 (NationPress) The sales of medium and heavy commercial vehicles (MHCVs) and tractors are expected to see an increase in India this month as the rush of festive buying subsides, a report indicated on Friday.
Post-festive retail sales have softened for two-wheelers (2Ws) and passenger vehicles (PVs), according to a report from Emkay Global Financial Services, which references Vahan data.
"Our forecast suggests wholesale dispatches of 21,000 and 8,000 units for Mahindra & Mahindra and Eicher, respectively, driven by a notable surge during the festive period (leading to manageable channel inventory) and continuing improvements due to favorable agricultural sentiment and cash flow," the report stated.
MHCVs are projected to demonstrate enhanced sales, with sequential improvements and moderated discounts, it noted.
"We anticipate domestic MHCV volumes at 16,000/10,000 units for Tata Motors Limited/Ashok Leyland, respectively. Overall commercial vehicle (CV) sales for Tata Motors are estimated at 30,000, while Ashok Leyland is expected to reach 16,200," according to the Emkay Global report.
In the 2W category, total volumes are projected to be 360,000 units for Hero MotoCorp (HMCL), 339,000 units for TVS Motor Co Ltd (TVSL), and 310,000 units for Bajaj Auto.
For the passenger vehicle (PV) market, anticipated overall volumes for Maruti Suzuki India Limited (MSIL) stand at 151,000 units (up 9.7 percent YoY), as per the report.
M&M is expected to show stronger performance, attributed to new launches and a relatively updated product lineup in the PV segment, with a projected 17 percent YoY growth at M&M, although volumes are likely to decrease sequentially to 41,000 units.
Blended discounts in the PV sector have been trending upwards and are currently at unprecedented levels following the festive period.
"In light of the overall growth slowdown in the automotive sector, we favor companies that exhibit bottom-up growth and have potential for margin expansion," the report concluded.
