Domestic automobile industry likely to log 17% revenue growth in June qtr: Report

economictimes.indiatimes.com:

automobile industry is expected to log a 17 per cent year-on-year revenue growth in the June quarter of FY24, a report said on Tuesday. This estimated growth will be led by healthy growth across segments, barring muted growth in battery companies, brokerage firm Emkay Global said in its report.

The revenue growth projections are excluding Tata Motors, it said. Segment wise, the report said, the domestic two-wheeler industry's volumes are likely to have improved by around 10 per cent Year-on-Year (YoY) in Q1, primarily on account of continued and healthy demand from the urban/premium segment.

However, the two-wheeler exports remained weak on a year-on-year basis while sequential improvement was recorded for larger volume players, it said. The overall revenue is expected to grow at 24 per cent, 19 per cent and 16 per cent amid volume growth of 10 per cent, 5 per cent and 21 per cent for Bajaj Auto, TVS Motors and Eicher Motor-Royal Enfield, respectively, Emkay Global said.

It also said that the revenue growth for Honda Motorcycle is expected at 6 per cent, amid a volume decline of 3 per cent. Continued price hikes would lend support to authorised service providers on a sequential basis, it said, adding, for Bajaj Auto, Emkay Global expects a 7 per cent quarter-on-quarter decline in authorised service providers, given a lower share of three-wheelers during the quarter.

The domestic passenger vehicle industry's volumes is expected to have grown by around 8 per cent year-on-year in the June quarter amid a ramp-up in production and continuing interest in SUVs, as per the report. The expectation is nearly 17 per cent revenue growth for market leader Maruti Suzuki, backed by 6 per cent higher volumes while Mahindra & Mahindra's