April Auto Sales preview | M&M likely to post highest sales growth in cars, Hero MotoCorp in two-wheelers
Summary
For the month of April, Nomura expects Maruti Suzuki to continue to see the lion’s share of the market clocking in the highest number of car sales. Mahindra and Mahindra Auto is likely to see the maximum growth in sales, as per the analyst’s projection.
Automakers, including Maruti Suzuki, Mahindra and Mahindra, Tata Motors, Bajaj Auto and Hero Motocorp, among others, report their monthly sales data on the first of each month. But May 1 being a market holiday, few companies might announce April sales numbers.
Among those who announced their numbers were Escorts Kubota. The company said total tractor sales were down 0.7% at 7,515 units versus 7,565 units YoY. Domestic tractor sales were down 1.2% at 7,168 units versus 7,252 units YoY.
With waiting periods in the cars or passenger vehicles segment going down, modest growth is expected in the segment whereas two-wheelers are likely to have witnessed good growth on the back of marriage season, according to analysts. The truck segment shall see mid-single-digit growth, analysts indicated.
Jefferies is of the view that wholesales in April would grow 15-18% on a year-on-year basis for TVS Motor Company, Bajaj Auto and Hero MotoCorp.
Nomura, meanwhile, expects the tractor segment growth to remain flat and the truck segment’s growth to be in mid-single digits.
The brokerage has pegged the industry’s growth for the 2024-25 fiscal year at 5%.
For April, Nomura expects Maruti Suzuki to continue to see the lion’s share of the market clocking in the highest number of car sales. Mahindra and Mahindra Auto is likely to see the maximum growth in sales, as per the analyst’s projection.
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In the two-wheelers segment, Hero MotoCorp is expected to witness the maximum market share and the highest YoY growth for the month under review. While Bajaj Auto may be in the second spot in terms of sales, TVS Motors is likely going to occupy the spot in terms of growth.
Here are Nomura’s auto sales estimates for April 2024:
April 2024 Estimate | April 2023 Actual |
YoY Change |
|
Maruti | 173500 | 160527 | 8.10% |
Tata Motors | 75600 | 69599 | 8.60% |
M&M Auto | 69000 | 62294 | 10.80% |
M&M Tractors | 36500 | 36405 | 0.30% |
Ashok Leyland | 13800 | 12974 | 6.40% |
Hero MotoCorp | 505000 | 396107 | 27.50% |
Bajaj Auto | 364000 | 331278 | 9.90% |
TVS Motors | 363000 | 306224 | 18.50% |
Eicher Motors | 84000 | 73136 | 14.90% |
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