The Indian automobile industry, including major players such as Tata Motors (NYSE:TTM), Maruti Suzuki, Hero MotoCorp, Mahindra & Mahindra (M&M), Ashok Leyland, and Eicher Motors Ltd, is bracing for the release of October sales data. Observers are keenly watching these companies due to the anticipated impact of the Shradh period, a time from late September to mid-October that traditionally sees a dip in retail sales.
Despite the expected seasonal downturn, Nomura India forecasts robust SUV growth and two-wheeler sales during the Navratri period. However, it also predicts a weaker performance in passenger vehicles and potential weakness in tractor sales during this time. The firm anticipates a 13% year-on-year rise in passenger vehicle wholesales to 381,000 units, a 19% increase in medium and heavy commercial vehicles wholesales, and a 16% growth in two-wheeler wholesales. Conversely, it expects tractor sales to decline by 10%.
Analysts at Anand Rathi remain bullish about the auto sector's prospects despite potential disruptions from electric vehicles (EVs). They favor companies like Hero MotoCorp, Bajaj Auto, TVS Motors, Tata Motor, and Maruti Suzuki India Limited (MSIL), while also acknowledging the potential impact of Hero MotoCorp Limited's (HMCL) financing arm on the sector's profitability.
Motilal Oswal Financial Services also expects positive trends in the auto industry. The firm predicts significant growth in dispatches for Ashok Leyland and Eicher Motors Ltd alongside Bajaj Auto Ltd. It also sees better growth potential in the two-wheeler segment over FY23-25E.
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