Indian auto market wholesales diverged across segments in August. We estimate that PVs grew ~10% YoY when trucks pretty much doubled YoY (15% above 2019). 2Ws and tractors, on the other hand, fell ~18% YoY. 2W exports remained robust, up 35-40% YoY. August wholesales raise our self-confidence on an imminent revival in trucks and cyclical fall in tractors. Chip shortage is hurting production and the influence could possibly worsen in Sep. We favor BHFC, MSIL and TTMT.
Good PV wholesales Maruti lagged on chip shortages: Based on OEM reported information, we estimate that August passenger car (PV) wholesales grew ~10% YoY (~31% above 2019). Maruti’s domestic wholesales have been down 9% YoY although as production was impacted by chip shortages. The impact of semiconductor shortages is probably to worsen for Maruti in September and the corporation expects production to be ~40% of standard level.
Tata Motors’ PV volumes rose 51% YoY. Hyundai’s India volumes have been up a slight 2% YoY when Mahindra’s SUVs rose 18% YoY in the month.
2Ws lagging: We estimate that domestic 2W wholesales (excluding Honda whose volumes have been awaited) fell ~18% YoY. Domestic 2W wholesales declined 11% YoY for Bajaj, 18% for Royal Enfield and TVS, and 24% for Hero. 2W exports, on the other hand, remained robust with August wholesales developing an estimated 35-40% YoY.
Big fall in tractors trucks enhancing: We estimate that tractor market wholesales fell ~18% YoY in August — 1st significant fall in more than a year. Domestic volumes declined 15% YoY for Mahindra and 27% for Escorts. Both OEMs pointed out in their press releases that customer sentiment is superior heading into the festive season. We estimate that August truck wholesales more than doubled YoY and have been ~15% above 2019 level.
Royal Enfield launched upgraded Classic 350cc: Royal Enfield (Eicher) has launched an upgraded version of its leading-promoting bike Classic 350. The solution has been created on a new engine platform to offer you a improved biking encounter, though car design and style has been largely retained.