Passenger vehicles, two-wheelers maintain positive run

New Delhi: Auto sales maintained the trends, with passenger vehicles and two-wheelers maintaining a positive run, whereas commercial vehicles and tractor segment sales momentum continued to be weak, Kotak Institutional Equities said in a report.

Passenger vehicle segment volumes witnessed a low double-digit improvement yoy in February 2024. Domestic 2W wholesale volumes witnessed more than 20 per cent YoY growth, driven by a recovery in the rural segment, which came in marginally above expectations.

Commercial vehicle segment volumes declined in the low single digits YoY, whereas tractor volumes declined in the high teens, the report said.

Domestic PV industry wholesale volumes increased in the low double digits YoY, driven by steady demand trends and channel filling, whereas retail sales grew in the high single digits during the month. MSIL’s domestic volumes rose 9 per cent YoY in February 2024, led by strong growth in the SUV segment, partly offset by a decline in hatchback and sedan segment volumes. As per our estimates, Maruti Suzuki’s wholesales market share stood at 42.8 per cent (-120 bps YoY). Tata Motors reported a 19% YoY improvement in PV volumes, whereas M&M’s volumes increased by 40 per cent YoY in February 2024. Hyundai Motors reports 7 per cent YoY growth, whereas Toyota witnessed strong growth of 52 per cent YoY in February 2024, the report said.

Domestic 2W wholesale volumes grew more than 20 per cent in February 2024. Domestic 2W wholesale segment volumes came in marginally above expectations, with growth of more than 20 per cent YoY. Growth in the domestic market was driven by steady demand trends and a favourable base, the report said.

Exports demand trends improved and witnessed a sharp improvement in volumes MoM, especially for TVS Motors. HMCL’s volumes increased 19 per cent YoY, whereas TVS Motors reported a 33 per cent YoY increase in volumes, driven by a strong uptick in the export segment. Royal Enfield’s volumes improved 6 per cent YoY, driven by a 5 per cent YoY increase in domestic volumes and a 13 per cent increase in export volumes. Bajaj Auto reported a 25 per cent YoY increase in two-wheeler volumes in February 2024.