Auto Sector Update - Passenger Vehicles Grow On Strong Demand, Easing Of Supply Chain Issues: Motilal Oswal
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Motilal Oswal Report
Demand for passenger vehicles has sustained, while two-wheeler demand recovery remains elusive. Tractor demand is largely stable, while commercial vehicle demand is improving on the back of Infrastructure activity.
Our interaction with leading industry channel partners reflects pessimism for two-wheelers, after the washout of festive and marriage season sales.
Passenger vehicle dealers reflect optimism on strong demand and improving supply from original equipment manufacturers.
Demand for medium and heavy commercial vehicles is benefiting from the rise in construction activity, especially in the residential housing segment. Tractor demand was largely stable.
In November 2021, wholesale volumes are estimated to decline by 17%/8% YoY for two-wheelers/tractors. Volumes are estimated to grow for passenger vehicle by 6% YoY, with the easing of semiconductor availability. Commercial vehicle wholesales are estimated to grow by 25% YoY and three-wheelers by 28% on a low base.
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