Monthly Auto Volumes - July 2022 - ICICI Direct

Wholesale dispatches for June 2022 came in steady with most segments reporting neutral to positive MoM growth. CV space continues to witness secular MoM growth trend and outperformed the OEM pack with encouraging double digit recovery in the M&HCV segment. In the 2-W pack it was largely flat performance MoM with Bajaj Auto being an exception, with the company reporting ~27% MoM growth albeit on a low base (impacted by supply side issues). PV space also witnessed flat MoM performance with Tata Motors leading the pack. Tractor space reported muted prints i.e. double digit YoY decline amid wheat export ban imposed around May 2022 end and channel stuffing in previous months.

In the CV segment, market leader Tata Motors (TML) reported volumes of 37,265 units, up 13.6% MoM. Ashok Leyland posted 9.5% growth to 14,531 units while VECV volumes rose 11.9% to 6,307 units. With private and public capex on the anvil, we expect CV sales volume to witness a thriving rally going forward. In the 3-W space, sales volume was a mixed bag but MoM performance was led by exports with domestic witnessing a decline. In the tractor space, M&M's tractor sales dipped 13.2% YoY to 41,848 units, with Escort's witnessing a decline of 19.8% to 10,051 units.

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Source : Equity Bulls

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Automobiles Volumes Sales July2022 ICICIDirect