Auto sales August 2023: Expect decent retail sales growth across all segments; PV dispatches likely to rise 4-5% YoY

livemint.com:

retail sales are expected to grow 4-5%, Passenger Vehicle (PV) retail sales are likely to jump 5-7% YoY, analysts said. Moreover, with freight demand likely to improve post-monsoon owing to the upcoming festive season, MHCV retail may grow 4-6% YoY. Tractor volumes are expected to grow 3-5% YoY led by healthy reservoir level and favorable crop realization, as per estimates by brokerage firm Motilal Oswal Financial Services.

However, demand has remained muted in the southern markets, it said in a report. Let us check the expected automobile sales in August across segments: Two-wheeler retail sales in August are expected to improve 4-5% YoY driven by stable urban demand along with gradual recovery in the rural market. Channel checks by brokerage firm Motilal Oswal suggest urban volume growth has been in the range of 5-7% YoY while rural growth has been 3- 5% YoY.

“iQube, which had a waiting period of one month, is now readily available post the decline in sales due to FAME subsidy reduction. To counter the competition in the 100CC segment, prices for both TVS Radeon and Hero MotoCorp’s HF Deluxe have been cut by ₹4,000-5,000. The volumes of HF Deluxe have been adversely impacted by just 10-15% due to Shine 100, while there is no major impact on Splendor.

However, this is likely to come down further going forward," the brokerage report said. Additionally, inventory across most of the two-wheeler dealers stands healthy at 35-40 days with Hero MotoCorp being the highest with 45-50 days. It expects dispatches for Hero MotoCorp and Bajaj Auto to decline 7% and 18%, YoY, respectively while the same is projected to grow for TVS Motor Company and Royal Enfield by around 3% and 8% YoY.