Business & Investment

Car Sales News: Car Sales Preview: Demand Settled Between Segments in December

New Delhi: According to analysts, December will end with a calm move across the automotive sector, with key segment sales likely to increase by about 1-3% year-over-year.

For motorcycles, inquiries and footsteps are below average, disappointing dealers who are unlikely to recover demand in the short term due to weak consumer sentiment, Nirmal Bang said in a note.



“Private vehicles (PV) are showing a gradual recovery month-on-month, but tractor dealers are showing a decline due to their high base. Commercial vehicle (CV) is recovering on a MoM and YoY basis. Rising fuel prices and the relatively cautious attitude of financial firms continue to be a problem for the CV segment, and dealers are confident that they will hit strong numbers in the coming quarters. ”

Nomura In India, motorcycle sales are expected to increase by 1% as inventory levels remain rising in 6-7 weeks. It was said that high vehicle prices and the imminent launch of some electric models were likely to have affected demand.

Companies like Hero MotoCorp have shown further price increases of up to Rs 2,000 from January due to rising commodity prices.

For passenger cars, Nomura expects industry-wide sales to decline by 1%.

“We expect

Suzuki’s domestic PV volume (Toyota, LCV, etc.) decreased by 13% from the previous year. The company’s overall volume is likely to decline by 5% year-on-year due to increased exports. ”

The company’s demand for CNG vehicles remains strong. However, in our view, the growing preference for SUVs remains an important short-term headwind. The amount of UV in MM has increased by 25% year-on-year on a low basis, and it is highly likely that it will be newly released. ”

In the CV industry

Sales volume is likely to improve, supported by strong demand for intermediate commercial vehicles (ICVs) / tippers and rising demand for MAV replacement.

Emkay’s domestic sales volume is 11% year-on-year in M ​​& M,

Motor-Volvo Eicher commercial vehicle, Tata Motors decreased by 5%, Ashok Leyland decreased by 20%. The launch of the CNG variant should support Ashok’s future volume, he said.

In the area of ​​personal vehicles, Emkay predicts that domestic sales will increase 30% year-on-year at Tata Motors, 24% at M & M and 18% at Maruti Suzuki. “Improved chip supply is expected to further improve production. Given strong orders, discounts remain low compared to the previous year,” he said.

In the motorcycle arena, Emkay forecasts domestic sales to decline 15% year-on-year at Eicher Motors-Royal Enfield, 13% at Hero MotoCorp and 7% at TVS Motor, but only 5% at Bajaj Auto. It is expected to increase. ..

Car Sales News: Car Sales Preview: Demand Settled Between Segments in December

https://economictimes.indiatimes.com/markets/stocks/news/auto-sales-preview-demand-muted-across-segments-in-dec/articleshow/88613466.cms Car Sales News: Car Sales Preview: Demand Settled Between Segments in December

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