February Auto Sales Preview: Growth momentum in cars, trucks and buses likely to continue; bikes may see demand revival
February Auto Sales Preview: Passenger and commercial vehicles are expected to post good sales numbers in February, while two-wheelers may show a slight demand revival in their retail figures. The auto companies every start of the month comes out with their sales numbers.
February Auto Sales Preview: The overall auto sector is expected to report strong sales figures in February 2023, wherein retails are expected to grow at 8-12 per cent year-on-year across segments, driven by multiple factors such as a healthy uptick in the urban markets, marriage season, and improved demand in two-wheelers.
With passenger vehicles (PV) and commercial vehicles (CV) likely to continue their sales growth momentum, the two-wheeler category is also expected to show slight improvement amid rising demand in February; however, broad-based recovery has a long way to go, as per Motilal Oswal report.
Also Read: Maruti Suzuki hikes Ignis price by up to Rs 27,000
PV retails are expected to grow 6-8 per cent YoY in February 2023, the brokerage said, however, it sees a decline in volume on a month-on-month basis mainly due to a drop in the enquiries across original equipment manufacturers (OEMs), though overall sentiments are still positive, it added.
CV volumes are likely to grow 11-13 per cent YoY during the month, according to Motilal Oswal and it added that demand perceptions were mixed from segments such as agriculture, while it remained stable from other industries.
Also Read: VECV expects up to 5% rise in vehicle prices with onset of stricter emission norms from April 2023
Another brokerage LKP Securities suggest weakness in two-wheeler sales except for electric vehicles (EVs), it sees PVs demand to remain strong, but production constraints may remain a challenge in higher variants of SUVs. While tractors are performing stable and strong.
Even YES Securities believe the uptick in rural demand in the two-wheeler category may help the segment register a good show in February on an MoM basis. It said, “In 2Ws, there are signs of improvement in few states, as marriage season demand pull is relatively improving.”
Also Read: Stocks to buy: These 6 auto shares may deliver up to 20% return in short term
The brokerage expects good demand for the CV segment amid heavy pre-buy ahead of stricter emission norms, which is expected to kick in from Aprils 2023, the brokerage said estimating a price hike between 4-6 per cent in commercial vehicles, going forward.
While, it added that the PV retails on the other hand are expected to be flattish to mid-single-digit decline as weak model mix continues to hamper deliveries and expects tractors volumes to be flattish MoM, led by continued support by state governments in terms of subsidies and crop prices.
Also Read: Worst day for Bajaj Auto shares in eight months — what's worrying investors
Catch the latest stock market updates here. For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
Top Gold ETF vs Top Large Cap Mutual Fund 10-year Return Calculator: Which has given higher return on Rs 11 lakh investment; see calculations
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
EPF vs SIP vs PPF Calculator: Rs 12,000 monthly investment for 30 years; which can create highest retirement corpus
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
09:19 AM IST