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The Indian auto industry exhibited diverse wholesale trends across segments in September. While two-wheeler sales saw a positive trajectory, with motorcycle and scooter manufacturers recording double-digit growth, a significant decline in volumes was observed for most car and tractor manufacturers.
All major two-wheeler manufacturers, including Bajaj Auto, TVS Motor Company, Hero Motocorp, and Eicher Motor's Royal Enfield, exceeded the wholesale volume projections outlined by CNBC-TV18 analysts for September. The strong performance of two-wheelers during the month extended to exports, which also displayed a notable improvement. However, Royal Enfield was the only manufacturer that underperformed the industry.
In the car or passenger vehicle (PV) segment, Mahindra and Mahindra reported volumes exceeding estimates. However, Ashok Leyland and Eicher Motors-VECV's figures were in line with projections. In contrast, Tata Motors' numbers fell short of poll predictions.
Despite the subdued growth in PV wholesales, commercial vehicle (CV) wholesale volumes experienced a decline across both the MHCV and LCV segments. Additionally, Tata Motors underperformed the industry on both MHCVs and LCVs.
The tractor segment also faced challenges in September. Escorts surpassed estimates, but M&M Tractor's volumes remained in line with projections.
Automakers expressed optimism regarding the upcoming 32-day festive period, starting on October 3. However, several manufacturers attributed the impact on September registrations to the earlier timing of the pre-festive 'inauspicious' Shraddh period.
Following the release of auto sales data on October 1 and 2, all the auto stocks included in the Nifty Auto pack experienced a decline on October 3. The decline in share prices, however, coincided with a broader market downturn, as the benchmark Nifty 50 index fell over 2% by 2:45 pm.
Maruti Suzuki and Bajaj Auto were among the top laggards in the auto sector, followed by Eicher Motors, TVS Motor Company, and Hero Motocorp. Deepak Shenoy of Capitalmind commented on Indian auto stocks on October 1, highlighting the lack of momentum in the Tata Motors stock. He suggested that a potential revival in China could benefit Tata Motors due to its JLR establishment, but cautioned that Indian numbers, excluding two-wheelers, remained unexciting. The strong performance of two-wheelers, he attributed to factors such as increased agricultural activity due to rainfall and upcoming elections. However, he observed that four-wheeler sales had not witnessed a significant increase and may require the Diwali period to see a positive change.
Source: Sept auto sales review: Two-wheelers in fast lane but cars, tractors and CV wholesales decline