Auto And Auto Ancillaries Q3 Earnings Preview: Volume Growth Gains To Be Limited Due To Input Costs Rise, Says ICICI Securities
A worker assembles a mold at the Motherson Sumi Systems Ltd. injection molding plant in Noida, India. (Photographer: Brent Lewin/Bloomberg)  

Auto And Auto Ancillaries Q3 Earnings Preview: Volume Growth Gains To Be Limited Due To Input Costs Rise, Says ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

The auto industry witnessed wholesale dispatches rise to historic highs in the run-up to the festive months.

As states opened up further in the approach to the festive season (October and November 2020), wholesales dispatches have remained elevated even in Dec-20.

Component shortages (e.g. semiconductors) has led to original equipment manufacturers focussing on channel inventory (currently at approximately four to six weeks) to manage potential production issues.

On the consumer side, passenger vehicles fared better (~12% growth) than two-wheelers (~8% growth) due to resilient rural demand coupled with the need for personal mobility. Tractors remained on strong growth trajectory (up ~20%).

Click on the attachment to read the full report:

ICICI Securities Auto and Auto Ancillary Q3FY21_Preview.pdf

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