Auto Sales Numbers - September 2020 - Acuité Ratings & Research

Suman Chowdhury, Chief Analytical Officer, Acuité Ratings & Research on Auto Sales Numbers announced today:

"In our opinion, the encouraging data on factory despatches by automobile companies reflect three factors – the continuing importance of personal mobility in a pandemic environment, improved demand environment in the rural and semi-urban areas vis-à-vis a lower base last year and the increased stocking by dealers in expectation of a pent up demand during the ensuing festive season. Clearly, the need for personal mobility has got significantly enhanced in the wake of the pandemic and the continuing disruption in the public transportation system. MSL's (Maruti) sales have not only grown by 30.8% in Sep 2020 but by 16.2% in Q2FY21 on a YoY basis, indicating a broader recovery in demand for PVs. What is noteworthy is that the mini and the compact car segment in MSL has grown by 44.3% in Sep 2020 and while HMIL's (Hyundai) overall volumes grew slowly due to a sharp drop in exports, its domestic volumes grew by 23.6% on a YoY basis, reinforcing the effect of both personal mobility and better rural demand. The latter impact is also seen in BAL's 6% YoY volume growth in Sept 2020 albeit partly contributed by a pickup in exports. We also believe that MSL's 10.1% growth in UV sales last month as against a decline of 10.6% in sedan volumes indicate an increasing preference for compact SUVs in upgrades by urban consumers, which will also benefit the players like HMIL and Kia Motors that have attractive offerings in that segment."

Source : Equity Bulls

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