Auto Sector Q3 Earnings Preview: Operating Leverage, Cost Control To Dilute Raw Material Impact, Says Prabhudas Lilladher 
Vehicles travel along a highway in an aerial photograph taken in Delhi, India (Photographer Anindito Mukherjee/Bloomberg)

Auto Sector Q3 Earnings Preview: Operating Leverage, Cost Control To Dilute Raw Material Impact, Says Prabhudas Lilladher 

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Prabhudas Lilladher Report

Demand recovery across segments continued in Q3.

Continuing the trend of Q2, strong retail momentum witnessed for tractors and passenger vehicles (double digit YoY growth), whereas two-wheelers retails were marginally lower YoY.

On wholesale basis, we expect volumes to grow strongly for tractors (up 20-22% YoY), PVs (up 14-15% YoY) and two-wheelers (up 19-20% YoY).

Among commercial vehicles, light commercial vehicles saw a good recovery (up 1-2% YoY), while the decline is medium and heavy commercial vehicles was restricted at 8-9% YoY.

However, three-wheelers are yet to see any material recovery with decline of 28-30% YoY.

Click on the attachment to read the full report:

Prabhudas Lilladher Automobiles Q3 Earnings Preview.pdf

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