Automobiles Sector Check - Sustained Recovery In Domestic Two-Wheeler Demand: Motilal Oswal

"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..Motilal Oswal Report.Our interactions with leading channel partners indicate a sustained recovery in domestic two-wheeler demand as the retail is expected to grow 7-8% YoY, led by stable demand in urban and gradual recovery in rural markets. As expected, reduction in subsidies for e-two-wheeler has resulted in 30-35% lower enquiries during the month. While we noted a 10-12% decline in enquiry level for passenger vehicles, retails are still expected to grow 2-4% YoY, led by the execution of order book and improving supply chain. Consequently, inventory level in PVs has increased to four-five weeks, largely for lower-end models. The retail sales of medium and heavy commercial vehicles are expected to decline by 4-6% YoY, due to the pre-buying effect before the OBD-II transition in March 2023. However, we have observed strong growth in the bus division, driven by demand from educational intuitions and a low base. As for tractors, although retail growth is expected to be strong (10-12% YoY) during the month, we do not expect any major impact on wholesale volumes as inventory levels are already high at 40- 45 days. Overall, in June 2023, wholesales for two-wheeler/passenger vehicle/three wheelers are estimated to grow ~2%/5%/25% YoY, while commercial vehicle/tractors are likely to decline 13%/2% YoY..Click on the attachment to read the full report:.ITC Price Target Raised By Jefferies On Improving Profitability.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."

Automobiles Sector Check - Sustained Recovery In Domestic Two-Wheeler Demand: Motilal Oswal

Inventory inching up in passenger vehicles; new model launches to help Maruti Suzuki outperform.

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Automobiles Sector Check - Sustained Recovery In Domestic Two-Wheeler Demand: Motilal Oswal

Inventory inching up in passenger vehicles; new model launches to help Maruti Suzuki outperform.

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