Early Onset Of Festival Season May Hit Automakers’ October Sales
Sales of most automakers may either decline or grow in single digits in October.
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.