OEM-Wise Divergence Dominates April Performance; Tractors and 2Ws Poised for Growth - Asit C. Mehta Investment Interrmediates Ltd Monthly Auto Sales Report - April 2025

Asit C. Mehta Investment Interrmediates Ltd. (ACMIIL) has released its latest auto sales report for April 2025, revealing a highly polarised performance across original equipment manufacturers (OEMs) and segments.

Two-Wheelers: TVS Leads with Resilient Growth; Hero Hit by One-off Dip

TVS Motors posted robust 14.9% YoY growth, driven by high-teens expansion in scooters and motorcycles and a sharp 45.9% rise in exports. Hero MotoCorp, in contrast, saw volumes dip 42.8% YoY due to a three-day planned production halt, though retail demand remained strong with 17% MoM growth.

Royal Enfield (Eicher Motors) recorded a modest 5.7% YoY increase, backed by strong export momentum (+54.5%) and 36.4% growth in the >350cc segment. Bajaj Auto's two-wheeler volumes contracted 7.0% YoY, even as exports inched up 3.6%.

Passenger Vehicles: M&M Outpaces Peers

M&M reported a standout 27.6% YoY growth in PV sales, well above its recent trend, likely aided by new EV launches. Maruti Suzuki exceeded expectations with a 7.0% YoY rise, buoyed by strong export, LCV, and OEM sales. Tata Motors saw a 5.1% YoY decline, with EV sales down 16.4% and ICE volumes down 3.4%. Hyundai experienced an 11.6% drop in domestic PV sales, though exports rose 21.5% YoY.

Commercial Vehicles: VECV and SML Isuzu Outperform on Low Base

VECV (Eicher Motors) led the CV segment with 27.3% YoY growth, driven by strong domestic and export gains. SML Isuzu followed with 43.2% YoY growth, thanks to both cargo (+77.6%) and passenger vehicles (+34.2%). In contrast, Tata Motors and Ashok Leyland posted declines of 7.8% and 6.0% YoY respectively, citing seasonal softness and high base effects. M&M's domestic CV volumes rose 4.0% YoY, consistent with its recent trajectory.

Three-Wheelers: Normalisation Continues

TVS Motors reported a 50.3% YoY surge in 3W volumes on a low base. Bajaj Auto managed 3.0% overall growth as exports rose 10.7% YoY, offsetting flat domestic performance. M&M and Atul Auto experienced marginal YoY declines due to base effects and softer demand.

Tractors: Agri Sentiment Stays Positive

M&M's tractor volumes grew 8.1% YoY, supported by strong domestic demand and 24.6% export growth. Escorts Kubota saw a 1.2% decline, primarily due to pre-festive sales occurring in March, but the company remains optimistic given favorable crop conditions and market sentiment.

According to Ms. Mrunmayee Jogalekar, Auto Research Analyst, Asit C Mehta Investment Interrmediates Ltd - Overall, the month saw mixed trends due to differences in base year performance and changes in festive timing. For this year, tractors are expected to continue to lead in terms of growth, followed by 2Ws. PV industry growth is expected at a muted 1-2% YoY while CV trends are still muted. However, CV growth may improve to mid-single digits going ahead due to a significantly low base in the upcoming months.

Source : Equity Bulls

Keywords

ACMIIL AsitCMehtaInvestmentInterrmediates AutoSalesReport April2025 OEMs