Nomura estimates mixed November auto sales; PV sales to decline

For the November month, auto sales number are due to be released on December 1. Domestic brokerage Nomura expects auto sales to be mixed with improvement expected in the rural demand, while the urban demand is estimated to remain weak.

Segment-wise, the passenger vehicle (PV) sales may continue to see pressure, amid tepid demand despite steep discounts being offered during the festive season.

Also, in the other segments including the two-wheeler (2W) and commercial vehicles (CVs), the demand is expected to remain sluggish.

Nevertheless, on the positive side, the sales trend will show positive growth during the review period.

Further, the brokerage anticipated the CV segment to exhibit recovery going forward in H2, with demand for tractors remaining strong.

In trade today (November 29), Nifty Auto ended a sharp over 1 per cent, led by gains in M&M, Maruti Suzuki and Tata Motors among others.

Here are the estimates across companies and segments

PV                                                                Nov-24            Nov-23      %change

MARUTI                                              1.78 Lakh          vs       1.64 Lakh             UP 8.6%

Hyundai                                                 64000            vs           65800             DOWN 2.7%

M&M (AUTO)                                            81000             vs          70576                UP 14.8%

TATA MOTORS (Domestic PV)     43000              vs         46143                DOWN 7%

In the PV segment, the companies are expected to register mixed sales with sales rising for Maruti Suzuki year-on-year, while the same for Hyundai will report a decline.

2W                                                              Nov-24            Nov-23      %change

HERO MOTO                                             4.75 Lakh         vs        4.91 Lakh         DOWN 3%

BAJAJ AUTO (2W)                                      3.64 Lakh       vs        3.49 Lakh             UP 4%

BAJAJ AUTO (TOTAL SALES)             4.26 Lakh        vs        4.03 Lakh             UP6%

TVS MOTOR (2W)                                     3.85 Lakh        vs        3.52 Lakh            UP 9%

TVS MOTOR (TOTAL SALES)                     3.96 Lakh        vs         3.64 Lakh             UP 9%

EICHER RE                                                    83000              vs            80251                UP 3%

CV                                                                  Nov-24            Nov-23      %change

EICHER VECV                                                 6400               vs         5194                     UP 23%

ASHOK LEYLAND                                   14300                vs        14053                    UP 2%

TATA MOTORS (Total CV)                          30000                vs        28029                    UP 7%

TRACTOR                                                    Nov-24            Nov-23      %change

M&M                                                                   35200          vs            32074                 UP 9.7%

Escorts                                                              7000           vs              8258