Emkay World expects private car (PV) business development at 15 per cent, with Tata Motors’ home volumes hovering 101 per cent and Mahindra & Mahindra’s 29 per cent on a low base, thanks provide points a year-ago. The brokerage pegs Maruti’s gross sales development at 7 per cent.
Maruti Suzuki is seen to report an extra fall in market share to to 47.5 per cent in February in contrast with 49 per cent in December quarter and 53 per cent in February final yr, Nomura India stated.
In case of two-wheelers, Emkay expects a combined bag, with quantity development for TVS possible at 9 per cent, Eicher Motors’ Royal Enfield’s at eight per cent and Bajaj Auto’s at four per cent. Hero MotoCorp is seen reporting a destructive four per cent development in gross sales.
Within the tractor phase, home volumes are seen rising 28 per cent for Mahindra & Mahindra and 27 per cent for Escorts. Within the business car phase, home business car volumes are anticipated to develop at 22 per cent for Ashok Leyland and 9 per cent for Tata Motors, whereas decline of 9 per cent for M&M attributable to provide points.
“MHCV demand has been enhancing on sturdy Tipper/ICV demand and a gradual restoration in substitute demand as effectively,” Emkay stated.
Nomura India stated that its commodity price index is up 350 foundation factors in contrast with the December quarter for each private autos and two-wheelers. It famous that whereas auto costs elevated 2 per cent in January, they had been inadequate and margin pressures are more likely to be larger for auto firms within the March quarter.
“M&M stays our high choose within the sector attributable to its: larger rural publicity (the place restoration is quicker), initiatives to handle capital allocation considerations, and engaging valuations. We additionally like Ashok Leyland, given the cyclical uptick in MHCV cycle. Amongst suppliers, we choose Motherson Sumi, and Minda for his or her sturdy OE demand restoration and better content material per car,” Nomura India stated.