Auto Industry Volume Update: September 2018 - Kotak

Automobile companies reported mixed sales performance in September 2018. Overall performance for different segments were impacted due to mix of factors that includes Kerala flood, below expected monsoon in August/September 2018 in various regions, mandatory driving license for two wheeler registration in West Bengal, delayed festive season (peak festive season is spread in October and November this year as compared to October in 2017) and negative macro sentiments (rise in fuel prices and interest rates). As expected, growth for the all the segments slowed down in 2QFY19, in comparison with 1QFY19. Going ahead 2HFY19, we expect gradual improvement in growth (over 2QFY19) for the two wheeler, passenger vehicle and tractor segment. However, due to below expected monsoon and rising fuel prices, growth is expected to remain impacted to some extent. For the commercial vehicle segment, growth is likely to stay healthy.

Source : Equity Bulls

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