Monthly Auto Volumes - July 2021 - ICICI Direct

The auto industry saw a decent recovery in June 2021, with resilience of the rural belt (tractor, etc) being the key takeaway for the month. PV segment also did relatively well while M&HCV space turned in a disappointing performance. With comparison redundant at YoY level (gradual pick-up post nationwide unlock), MoM level (washout month due to Covid-19 second wave), we examine trends vs. April 2021, last month of normal sales.

The CV space lagged the overall automotive recovery for the month. Pure-play CV maker Ashok Leyland's volumes fell 22.7% to 6,448 units (trucks down 39.7%) with the performance being accompanied by worse product mix (M&HCV at ~43% of sales vs. ~52% in April). LCV volumes at M&M declined 10.3% within overall CV decline of 10% to 12,694 units. Market leader Tata Motors, however, outperformed with 32.8% growth to 22,100 units. VECV volumes rose 13.7% to 2,438 units. Q1FY22 volumes in the pack fell >50% QoQ for M&HCV-heavy players, ex-M&M. The tractor space outperformed the rest of the pack despite fears of pandemic impact on rural India courtesy strong macro tailwinds. Volumes at M&M & Escorts for the month were at 48,222 & 12,533 units, respectively.

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Source : Equity Bulls

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