Auto sales jump over 57% Y-o-Y during Navratri 2022: Motilal Oswal expects margin expansion in Q2

Auto sales rise: On the back of strong demand, the total automobile retail sales during Navratri 2022 jumped more than 57 per cent year-on-year, the Federation of Automobile Dealers Associations (FADA) pointed out while releasing the sales figures of the 9-day festive season.

As many as 5,39,227 vehicles were sold in total during Navratri 2022, as compared to 3,42,459 units during Navratri 2021. The two-wheeler segment saw the maximum surge with respect to volumes, while the three-wheeler gained the most in terms of percentage In 2022 Navratri.

2022 Navratri witnessed a surge of over 15 per cent as compared to the pre-covid year of 2019 Navratri. Total sales of 4,66,128 units were reported in 2019 Navratri, as per the report.

The three-wheeler category saw maximum growth of over 115 per cent year-on-year to 19809 units in Navratri 2022 as compared to 9203 units in Navratri 2021, followed by passenger vehicle (PV) sales up by over 70 per cent to 1,10,521 vehicles in this year as against 64,850 units in a year-ago period.

While the two-wheeler and tractor categories grew by over 52 and 57 per cent, respectively, Y-o-Y, and the commercial vehicles (CV) segment surged by over 48 per cent Y-o-Y this year in Navratri.

Auto industry performs very well across various categories during this year's Navratri Festival, FADA President Manish Raj Singhania said on its official Twitter handle, adding further that “hoping to see a similar bull run till Deepawali.”

The automobile dealers’ association for the first time came out with Navratri auto retail figures. The 9-day Navratri festival is followed by Dussehra, which is considered to be one of the auspicious days to buy a new vehicle among other precious things.

With auto companies releasing their Q2 update and on the basis of monthly sales data, Motilal Oswal said that the volumes in the second quarter of the financial year 2022-23 recovered across segments on a low base of 2QFY22, aided by some improvement in semiconductor supplies.

The brokerage, for the second straight quarter, expects the EBITDA (earnings before interest, taxes, depreciation, and amortization) margin to improve by 310 basis point (bp) YoY and 130 bp sequentially for most of the Auto OEM (Original Equipment Manufacturer), led by price hikes and operating leverage, despite the residual impact of an increase in raw material cost.