Monthly Auto Volumes - August 2020 - ICICI Securities

August 2020 witnessed continued broad-based MoM upturn in auto industry volumes, marking the third straight month of sequential improvement post relaxation of lockdown measures in the country. Rural facing segments remained at the forefront of the recovery, in general, with volumes ex-CV & 3-W either growing YoY or seeing limited single digit declines - an encouraging development. The tractor space continued to be the flagbearer of the revival, with key players reporting robust growth.

For tractors, positive rural sentiment, industry tailwinds (healthy Kharif sowing, good monsoon progress) continued to drive substantial YoY growth for key players M&M, Escorts. Total volumes for them rose 65.1%, 80.1% YoY, respectively. Escorts' supply side issues in previous month were put to rest, with the company operating at close to peak capacity in August. The 3-W segment, however, stayed a laggard vis-à-vis rest of the industry. BAL, M&M reported volume decline of 45.7%, 94.3% YoY, respectively.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_Monthly_AutoVolumes_Sep20.pdf

Source : Equity Bulls

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