India auto sales gain momentum in September but tractors lag: Jefferies
New Delhi, September 30
India's automobile sector is expected to see broad-based growth in September, with passenger vehicles, two-wheelers and commercial vehicles recording strong sales momentum, while tractors are likely to lag behind, according to a Jefferies research report.
Vehicle registrations during the first 25 days of September rose 78 per cent year-on-year for passenger vehicles and 75 per cent for two-wheelers, while registrations of medium and heavy commercial vehicle trucks increased 53 per cent. Tractor registrations, in contrast, grew only 4 per cent during the period.
However, Jefferies said the sharp year-on-year growth partly reflects a favourable comparison with last year.
"YoY growth is boosted by a low base as Sep-25 was impacted by earlier timing of inauspicious period and deferment ahead of GST cut," the report said.
The brokerage expects September wholesale volumes to rise 25-27 per cent year-on-year for Ashok Leyland and Tata Motors Passenger Vehicles, 15-17 per cent for Bajaj Auto, Maruti Suzuki and TVS Motor, and 9-10 per cent for Royal Enfield, Hyundai Motor India and Mahindra & Mahindra. Hero MotoCorp volumes are expected to remain broadly flat.
Among individual companies, Ashok Leyland's total volumes are estimated to rise 27 per cent to 23,950 units, driven by a 36 per cent increase in medium and heavy commercial vehicles to 16,050 units. Tata Motors Passenger Vehicles is expected to record 25 per cent growth to 76,000 units.
Maruti Suzuki's total volumes are projected to increase 17 per cent to 222,500 units, while Hyundai Motor India is expected to report 9 per cent growth to 77,000 units.
In two-wheelers, TVS Motor's total volumes are estimated to increase 17 per cent to 635,000 units, while Bajaj Auto is expected to post 15 per cent growth to 585,000 units. Royal Enfield volumes are seen rising 10 per cent to 137,000 units. Hero MotoCorp, however, is projected to remain nearly unchanged at 684,000 units.
The weakness in tractors is also visible in Mahindra & Mahindra's estimates. While its automobile volumes are expected to rise 20 per cent year-on-year to 121,500 units, tractor volumes are projected to decline 6 per cent to 62,000 units. The company's overall volumes are estimated to grow 10 per cent.
Jefferies' registration data also showed TVS gaining share in the two-wheeler market, while Mahindra increased its passenger-vehicle registration share during September.
— ANI
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