Automakers To End FY18 With A Bang

Indian automobile makers will end the financial year 2018 with a bang.

That’s according to a BloombergQuint poll of two brokerage houses, which suggest double-digit sales growth in March for all segments, be it commercial vehicles or two-wheelers.

Most interaction with the leading channel partners indicates strong demand momentum across segments in March, Jinesh Gandhi, analyst at Motilal Oswal wrote in a report.

Sales across the country — especially in the north and west region — gained traction in the previous two months aided by festive season demand and improving rural sentiment on rising income and government spending.

The medium and heavy commercial vehicle (MHCVs) industry is also likely to sustain strong around 15 percent year-on-year growth, Nomura Analyst Kapil Singh said in a research note. “It could have been much higher if not for capacity constraints."

Brokerages’ View On Monthly Sales Data

Maruti

• Bookings for new Swift and longer waiting periods for Baleno and Brezza to aid volumes.

Bajaj Auto

• The Pune-based two-wheeler maker will benefit from higher despatches of recently launched Discover model.

Hero MotoCorp

• The country's largest two-wheeler maker's sales growth will be helped by strong demand in rural markets and lower base.

TVS Motor

• Healthy volume growth seen on the back of low base and launch of Ntorq scooter.

Ashok Leyland

• Demand for trucks and commercial vehicles remain strong.
• Analysts expect further price hikes and lower discounts for the CV industry ahead.
• LCVs sales expected to grow over 45 percent in March (YoY).

Tata Motors

• The passenger vehicle segment is expected to grow by 20 percent.
• It may benefit from higher sales volumes of Tata Nexon compact UV.
• Strong momentum is expected from CVs, LCVs segment.

M&M

• Utility vehicles sales are expected to remain flat
• However, the strong sales in the CVs and tractor sales will offset the weakness in UV segment.