Motilal Oswal: India’s Automobiles Q1 Wholesales Review
Vehicle travel along Marine Drive in Mumbai, India, on July 14, 2020. (Photographer: Dhiraj Singh/Bloomberg)

Motilal Oswal: India’s Automobiles Q1 Wholesales Review

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.

Motilal Oswal Report

Escorts Ltd.’s tractor dispatches grew approximately 9.5% YoY to 5.3 kilo units (versus estimate 6.07 kilo units) in July 2020. Domestic sales increased approximately 9.9% YoY while exports grew approximately 3.9% YoY.

Mahindra and Mahindra Ltd.’s tractor volumes grew 27% YoY to 25.4 kilo units (versus estimate 22 kilo units). We have factored in 3.5% volume growth for FY21E, implying 13% residual growth or 27.7 kilo units.

Maruti Suzuki India Ltd.’s wholesales declined marginally by approximately 1.1% YoY to 108 kilo units (versus estimate 96.6 kilo units). Domestic volumes grew approximately 1.3% YoY to 101.3 kilo units (versus estimate 91 kilo units).

Hero MotoCorp Ltd.’s volumes declined approximately 4% YoY to 514.5 kilo units (versus estimate 535.8 kilo units). We estimate volumes to decline approximately 11.8% in FY21E, implying residual growth of 13.5% or run-rate of 571.8 kilo units.

TVS Motor Company Ltd.’s wholesales declined 9.6% to 252.7 kilo units (versus estimate 240.2 kilo units). Two-Wheeler volumes were down approximately 8.2% YoY to 243.8 kilo units. Domestic Two-Wheeler declined 9% YoY, whereas Two-Wheeler exports declined 5%.

Ashok Leyland Ltd.’s wholesale dispatches stood at 4,775 units (versus estimate 3,111 units), down 56.3% YoY.

Eicher Motors Ltd.’s Royal Enfield (RE) dispatches declined approximately 25.6% YoY to 40.3 kilo units (versus estimate approximately 41.7 kilo units). Domestic retails were broadly similar to wholesales.

Click on the attachment to read the full report:

Motilal Oswal Automobiles Sector Update.pdf

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