Auto Industry Volume Update: July 2018 - Kotak

In July 2018, wholesale volume growth varied amongst segments and for players within the same segment. Despite uncertainty over revised axle norms, commercial vehicle segment posted high growth in July 2018. Rural pick-up and aggressive pricing boosted two wheeler sales volume growth. Passenger vehicle segment witnessed a lackluster month and for tractors the performance varied between the key listed players. We believe that sales during the month would have been impacted on account of transporters strike. Further, base effect also played a role as July 2017 was the first month of GST implementation and manufacturer's had resorted to inventory restocking. In the auto OEM space, Mahindra and Mahindra and Maruti Suzuki remains our preferred picks.

Source : Equity Bulls

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