The report further noted that the two-wheeler sales are likely to have performed better, with growth during the festive season projected at around 4-5% year-on-year.
In the 2W category,
"PVs may see a fall in the festive season vs. last year. Inventory levels are currently high for both 2Ws and PVs, making Diwali sales a critical period to gauge inventory clearance," it added.
During the month, PV volumes of
On the other hand, Tata’s volumes would have declined by 3%, and Maruti Suzuki’s volumes are likely to have dipped by 5%, as noted by Anand Rathi Research's preview note of the
The Motilal Oswal report also underlined similar sentiments, i.e., two-wheeler sales in October 2024 are expected to have grown only slightly, with PV and CV volumes likely to have stayed flattish. However, tractor sales are likely to see some positive action, thanks to the good monsoon and uptick in rural demand.
Tractor sales to shine, CV sales to be a pain point
Anand Rathi Research estimates that during the month, tractor volumes for Mahindra and Mahindra are likely to have risen by 5%, while that of its competitor Escorts Kubotas is projected to have inched up by a mere 2%.According to the preview note for October 2024, retail sales can be expected to jump by around 30% for two-wheelers, 18% for PVs, 3% for tractors, and about 2% for CVs. Both Motilal Oswal and Anand Rathi estimate that the demand for CVs will continue to remain weak for some time to come, with volumes likely to see a 5% YoY decline.
Despite this, experts remain optimistic about the auto sector, largely thanks to some growth seen in rural sentiments, which is expected to keep the overall demand buoyant. However, there are doubts about whether this demand will sustain itself beyond the festive season.
However, from an investment perspective, Nifty Auto has been having a steady year, with YTD (yield-to-date) of 25.99%. For investors who've entered the sector in the last month, the returns at a negative of 13.39% have been far from promising. Long-term investors, i.e. those with an investment horizon of around 5 years, have witnessed stellar returns from the sector, with yields going as high as 177.61%