Dolat Capital: Auto OEM Monthly Preview: Two-Wheelers And Tractor Retail Sales On Strong Footing
Workers on a tractor travel along a road. (Photographer: Dhiraj Singh/Bloomberg)

Dolat Capital: Auto OEM Monthly Preview: Two-Wheelers And Tractor Retail Sales On Strong Footing

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. 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 two-wheelers and passenger vehicles (PV) are seeing gradual improvement in enquiries to pre-Covid-19 levels by August end, supply/production side issues are also being resolved gradually.

We expect two-wheeler/commercial vehicle dispatches are likely to fall by 4/39% YoY while PV/Tractor sales to grow by 2/23% YoY for August 2020.

In the PV segment, sales are being driven by necessity-based demand, with the major portion of sales coming from first-time buyers while replacement demand is still low.

Most of the demand is coming for low end cars and Maruti Suzuki India Ltd. is much ahead of its peers. Realization of old vehicles is also inching up due to traction in the used car market.

Two-wheeler retail sales are comparatively better led by pent up demand and preference for personal vehicles.

Rural demand is sustaining well, a trend which is unlikely to change materially. Tractor demand continues to hold up led by strong Rabi output and good monsoon till date.

Click on the attachment to read the full report:

Dolat Capital Auto OEM Monthly Preview_28-Aug-20.pdf

DISCLAIMER

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 brokerage 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.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.