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Auto OEM Monthly Preview - Losing Momentum, Two-Wheelers Worst Hit: Dolat Capital

Auto OEM Monthly Preview - Losing Momentum, Two-Wheelers Worst Hit: Dolat Capital

Motorcyclists sit in traffic at night in Nagpur, India. (Photographer Dhiraj Singh/Bloomberg)
Motorcyclists sit in traffic at night in Nagpur, India. (Photographer Dhiraj Singh/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

Given the unprecedented surge in number of Covid-19 cases and lockdown in many cities, we expect April 2021 dispatches to decline steeply month-on-month (two-wheeler down 12% four wheeler down 10%, commercial vehicle down 40% YoY, tractor down 18%) as festive (Gudi Padwa and Navratri) and marriage season demand were severely hit.

Next month volumes are also likely to decline significantly as Covid-19 cases are skyrocketed and also impacting rural income and demand.

Footfalls and enquiries were down 40-50% month-on-month.

Moreover, supply chain issue is also disrupting production of many original equipment manufacturers.

Click on the attachment to read the full report:

Dolat Capital Auto OEM Monthly Preview - April_21.pdf

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