Sales of most automakers, barring market leader Maruti Suzuki Ltd. and Royal Enfield motorbike maker Eicher Motors Ltd., will either decline or grow in single digit in October, a BloombergQuint poll of four analysts shows.
That’s because sales had grown at a faster pace in the same month last year during the festival season. This year, the festive demand was split between two months as the nine-day Navratri, considered auspicious, fell in September.
Sales growth across-the-board is expected to be muted as a large part of festive-led inventory build-up was reflected in September, Chirag Jain, auto analyst at SBI Caps, said.
Rural demand has shown strong growth, driven by a good monsoon and an improvement in sentiment, Motilal Oswal Securities said. Here’s what the Mumbai-based brokerage expects...
Key Factors
Maruti
- Domestic sales volumes to remain healthy, especially for the premium hatchback segment.
- Demand for the Baleno, the Vitara Brezza and the New Dzire remains strong.
Tata Motors
- Passenger vehicle segment expected to post double-digit growth.
- Commercial vehicle sales may grow 4-5 percent year-on-year.
Mahindra & Mahindra
- Tractor sales to decline due to a higher base last year.
- Utility vehicles and auto segment sales to see a double-digit decline due to weak demand.
TVS Motors
- Higher scooter sales will offset the weak demand for motorcycles.