Motilal Oswal: Auto Sales Channel Check - Encouraging Inquiries Across Segments In Seasonally Weak Month  

Motilal Oswal Report

As per the Indian custom, the September 2020 periods of Shradh (from 02 to16) and Adhik Maas (September 18 to October 16) are deemed inauspicious.

Nevertheless, demand saw positive momentum, and original equipment manufacturers (OEMs) utilized this period for inventory refilling.

Sustained demand recovery was seen owing to a growing preference for personal vehicles, high disposable incomes in the rural markets, and improving recovery in the urban markets.

Utilization levels improved on month on month basis at most OEM plants in September 2020.

Our interaction with leading industry channel partners indicates two-wheeler inventory has reached 30–45 days on the expectation that sales momentum would continue into the festive season and passenger vehicle inventory would sustain at a comfortable level of 20–30 days.

Inquiries were encouraging and better than last year.

Light commercial vehcile demand has recovered and is now moving toward growth momentum.

Medium and heavy commercial vehicle has seen demand only from the Infrastructure/Construction sector, accounting for approximately 30% of total sales.

While overall consumer sentiment has improved, urban customers remain cautious given an uncertain environment.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.