Auto Sales Likely To Stay Buoyant On Strong Rural Demand
Passenger vehicle and two-wheeler sales are expected to stay buoyant, growing in double digits in July, according to a BloombergQuint poll of analysts. But a strike by truckers and the lack of clarity regarding higher freight weight limits would lead to a decline in the volumes of medium and heavy commercial vehicles.
Here are the factors, according to Nomura, that could impact sales for individual automakers:
Ashok Leyland: Sales of light commercial vehicles expected to rise 52 percent. Medium and heavy truck segment will see flattish growth as the government’s decision to raise payload limits impacted purchase decisions.
Bajaj Auto: Two- and three-wheeler sales, along with exports, will drive volumes in July.
Eicher Motors: Demand for Royal Enfield motorcycles remains strong.
Hero MotoCorp: Strong rural market to aid sales growth.
Mahindra & Mahindra: Light commercial vehicles and tractors to sustain growth momentum.
Tata Motors: Medium and heavy trucks to be impacted due to higher axle load norms.
TVS Motor: Export growth to outperform domestic market volume growth.