December Auto Wholesales - Despatches Fail To Keep Up With Demand: 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
Passenger vehicle original equipment manufacturers’ attempt to catch up to the demand for popular models was impacted by production cuts, while two-wheeler OEMs have likely been able to pare down high channel inventories post festive season (~8-10 weeks).
Entry-level demand trends across two-wheelers and passenger vehicles have remained weak. OEMs are hoping to stoke consumer sentiment with new launches (e.g. M&M XUV700, Tata Punch, MG Astor, TVS Raider) even as availability of popular models remain elusive; however, increasing price hikes (~8-10% across segments since January 2021) and rising fuel costs could limit consumer wallet spends at the entry level even as Covid-19 cases surge throughout the country.
Faster vaccination leading to opening up of workplaces and educational institutes could aid revival of transportation segments (e.g. three-wheeler/buses/scooters) in CY22.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.