Auto OEM Monthly Preview – Auto Volume To Be Muted In Feb Except Passenger Vehicles: Dolat Capital

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.Wholesale numbers in February 2023 are expected to be a mixed bag, strong demand for passenger vehicles, premium bikes, and scooters was offset by muted demand for entry and midlevel bikes and light commercial vehicles. Enquiries and bookings across segments are improving on back of marriage season demand and recovery in rural spending. Dealer inventory is at a normal level (passenger vehicle 15-20 days, two-wheelers 30-35 days). Our View :PVs demand is strong and a high order backlog to drive volume growth in the coming quarters. Domestic two-wheeler business is showing signs of recovery however entry-level bike demand is still in a weaker zone. In commercial vehicle, although current demand was driven by pre-buying, expect it will see some moderation in growth in FY24 due to the ripple effect of high-interest rates in many sectors and cost increase due to the implementation of BS6 Phase 2. We expect rural demand to pick up from Q4 led by pickup in government spending (ahead of 2024 elections) and strong Rabi sowing (benefitted from adequate water level in reservoirs) and strong prices of all agro products which will benefit players like Hero Moto Corp Ltd., Maruti Suzuki India Ltd. and Mahindra and Mahindra Ltd..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Auto OEM Monthly Preview – Auto Volume To Be Muted In Feb Except Passenger Vehicles: Dolat Capital

PVs demand is strong and a high order backlog to drive volume growth in the coming quarters.

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