A customer walks past a Volkswagen AG Audi A4 vehicle, right, on display inside the Audi Delhi South dealership in New Delhi, India (Photographer: Graham Crouch/Bloomberg)  

Rural Demand, Inventory Build-Up To Boost May Auto Sales

Auto sales growth is expected to continue across segments in May, according to a BloombergQuint poll of three analysts.

Anticipation of good monsoons and rising rural demand is expected to boost sales of tractors and two-wheelers. Analysts also expect double-digit growth for passenger and commercial vehicles.

A dealer channel check by Nomura indicated that inauspicious period from mid-May led to lower retail offtake. The companies, however, will use the opportunity to build up inventory given the healthy demand outlook.

Rural Demand, Inventory Build-Up To Boost May Auto Sales

Company-Wise Factors

Maruti Suzuki

  • Strong sales growth expected on higher demand, aided by debottlenecking of capacity.

Mahindra & Mahindra

  • Double-digit growth likely in utility vehicles.
  • Robust rural demand to help tractor sales.

Tata Motors

  • Growth expected to remain strong for both passenger and commercial vehicles.
  • A ramp-up of Tata Nexon compact UV and recent launches to aid overall performance.

Ashok Leyland

  • Lower base last year and pick-up in overall infrastructure-led demand to aid growth.

Hero MotoCorp

  • Rising rural income and improved demand to lift overall sales volumes of the country’s largest two-wheeler maker.

Bajaj Auto

  • Higher two-wheeler exports and domestic three-wheeler sales to boost growth.