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Auto OEM Monthly Preview - Growth Momentum Waning, Wholesale Aided By Re-Stocking: Dolat Capital 

Auto OEM Monthly Preview - Growth Momentum Waning, Wholesale Aided By Re-Stocking: Dolat Capital

Traffic moves along a highway during morning rush hour in Delhi, India. (Photographer Kuni Takahashi/Bloomberg)
Traffic moves along a highway during morning rush hour in Delhi, India. (Photographer Kuni Takahashi/Bloomberg)

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.

Dolat Capital Report

Our channel checks indicate that retail sales were weak across segments dragged by -

1. Lower discounts (especially for passenger vehicles) versus last year,

2. Farmers’ protest (North India),

3. Customers waiting for refreshed 2021 models,

4. An inauspicious period starting in mid-December,

5. Exhaustion of pent up demand (especially in two-wheelers) and

6. Depressed freight rates and underutilization of truck (dent for medium and heavy commercial vehicle demand).

However, inventory is lower than normal for passenger vehicles and tractors, leaving headroom for higher wholesales.

Click on the attachment to read the full report:

Dolat Capital Auto OEM Monthly Preview - Dec'20.pdf

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