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Sector performance

The month of June has shown a consistently strong volume performance for the SUV segment, while M&HCVs have shown a dip. Improvement in sentiments, absorption of price hikes, new model launches and slow and steady revival of rural markets has led to a midsingle digit growth for 2Ws. LCVs have performed well on low base, while buses were remarkably good. 2W exports however posted a weak performance considering the continued issues in some of the African countries and Red Sea concerns. On the PV front, SUV growth story remained intact. On the CV side of the sector, we witnessed M&HCV segment decline for both the major CV players, while we saw LCV segment posting better growth. Tractor makers witnessed a lower to mid-single digit growth yoy except for VST, which witnessed a huge fall. Sequential growth for all the three companies was highly positive in the domestic markets.

Company wise performance

Among the PV OEMs, MSIL posted sales of 1.79 lakh units. On a yoy basis, the total sales in the domestic markets rose by 2.9% yoy while the exports grew by 57% yoy, which led the total sales to rise by 12% yoy. SUV positivity was offset by the deceleration in the small car segment which fell by 33%. The compact car segment as well de-grew by 0.7% yoy and 6.1% mom. The SUV segment continued its splendid run at 20.7% yoy while de-growing at 3.4% mom. TaMo’s PV segment saw an 8% yoy de-growth and 12% mom growth. M&M’s SUV segment on the other hand, continued its strong run and jumped by 23% yoy and fell by 7.4% mom. CV division was down by a bit 1.7% yoy but was up 4% mom. For Ashok Leyland as well, MHCV sales fell by 4.4%% yoy and rose by 3% mom. LCVs posted 1.2% growth yoy, while total sales de-grew by 2.5% yoy while growing by 1.8% mom. M&M’s tractor business in the domestic markets grew by 5.8% yoy and 30% qoq. Escorts Kubota domestic tractor sales grew by 1% yoy and 13.7% mom. VST Tillers compact tractors segment plummeted by 55% yoy and grew by 17% mom signalling good monsoon in some of the states where it has a strong hold. Tillers fell by 49% yoy while growing 58% mom. 2W sector has been the outperformer in the industry for a while now. On a YTD basis, though Bajaj has grown by 7.3%, June sales reported growth of 6.6% yoy, but fell by 5.9% mom for its domestic motorcycles, while exports motorcycles dropped by 0.7% yoy, while grew by 7.9% mom. A continued traction in exports is necessary to confirm the momentum going forward. Their 3W segment moved up by a strong 16.5% yoy domestically on a good pick up in the CNG portfolio and e-3Ws. Exports 3Ws posted a solid recovery of 14.3% yoy. TVS’s 2W segment reported 5.8% yoy growth of which motorcycle segment grew by 3% yoy, while scooters grew by 6.3% yoy, I-Qube, the e-scooter sales were ~14.4K v/s 15.8 yoy indicating slight slowdown in EV scooters. Mopeds segment of TVS de-grew 0.4% yoy. 3Ws decreased by 4.4% yoy but rose by 11.2% mom. Hero Motocorp is yet to report their June 2024 sales numbers.

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