Pain Persists For One Category Of Auto Sales Rise In January, Say Analysts
The expected single-digit growth in sales of two-wheelers is largely driven by the demand in some areas due to the wedding season.
Sales of automobiles are expected to rise strongly categories, barring two-wheelers, as demand remained robust and shortage of semiconductors eased in January, analysts said.
New launches and healthy order books aided car sales during the month even as transition to BS-VI phase-2 norms is likely to cause slight disruption in dispatches from dealerships, according to analysts.
The expected single-digit growth in sales of two-wheelers are largely driven by the demand in some areas due to the wedding season, they said.
However, it is reflective of the slowdown in two-wheeler sales from December after the festive season led to a bump in sales before losing steam yet again.
According to brokerage Motilal Oswal, the first half of the month was dull due to the inauspicious period, which ended on Jan. 15, but demand picked up in the second half.
The brokerage said Maruti Suzuki India Ltd.'s new launches, Jimny and Fronx, at Auto Expo 2023 have grabbed 10,000–11,000 and 4,000–5,000 orders. The cars have joined Grand Vitara and new Brezza in the company's SUV portfolio.
Jefferies India said the country's largest automaker regained market share in the passenger vehicles during the month.
In the commercial vehicle category, robust demand in both passenger and cargo segments continued to support sales.
The inventory with dealerships has declined due to the transition to new emission norms, and the sales have grown due to recovery in construction activities and high utilisation rates for the fleets.
Tractor sales are expected to grow moderately in January due to anticipation of delayed harvesting as sowing was also late this season amid an erratic monsoon.