Mumbai: The automobile industry experienced mixed results in June 2024, with two-wheeler sales showing resilience while passenger vehicles (PVs) and commercial vehicles (CVs) saw slight declines. This trend, according to an Anand Rathi report, is primarily due to the absence of wedding dates, which typically boosts vehicle sales.

Two-wheeler (2W) volumes remained strong, while PV and CV segments experienced a subdued trend. Tractor volumes stayed flat during this period. Despite a single-digit decline in wholesale volumes for listed two-wheeler companies, overall growth was led by Honda, benefiting from a favorable base in the previous year.

Year-to-date (YTD) growth for the auto sector has been robust, with a notable 15 percent increase. Looking forward, industry experts anticipate a positive outlook, with two-wheelers expected to outperform other segments.

Projections for FY25

Two-Wheelers: Expected growth rate of 11 percent.

Passenger Vehicles: Anticipated growth of 5 percent.

Commercial Vehicles: Projected growth of 5 percent.

Tractors: Expected growth of 4 percent.

Key Manufacturers and Market Trends

Two-Wheelers: TVS Motors is expected to report a 3 percent increase in volumes, while Royal Enfield may see a 16 percent decline. Hero MotoCorp and Bajaj Auto might experience slight declines of 5 percent and 4 percent, respectively. The retail market faced a month-on-month (m/m) decline of 10-15 percent due to the lack of auspicious wedding dates.

Passenger Vehicles: Mahindra & Mahindra is projected to lead with a 32 percent rise in volumes, while Maruti Suzuki is expected to maintain flat volumes. Tata Motors may witness a 5 percent decline in volumes. Blended discounts varied, with increases for Maruti Suzuki and reductions for Tata Motors.

Commercial Vehicles: VECV (Volvo Eicher Commercial Vehicles) is likely to achieve a 6 percent increase in volumes, and Ashok Leyland a 4 percent rise. Tata Motors and Mahindra & Mahindra, however, are expected to see declines of 3 percent and 2 percent, respectively.

Tractors: The market is anticipated to remain stable, with Mahindra & Mahindra and Escorts both expected to report a modest 1 percent increase.

Positive Sentiment in the Automotive Sector
The overall sentiment in the automotive sector remains positive, with key original equipment manufacturers (OEMs) like Hero MotoCorp, TVS Motors, and Mahindra & Mahindra being identified as preferred picks.

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