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The Indian automotive sector in April 2024 has shown remarkable tenacity, with the 2W segment leading the charge. A YoY growth of 28% was headlined by Hero Motocorp's stellar 35% increase, buoyed by its expansion into Nepal through a new product assembly facility and a strategic plan to open at least 100 sales and service outlets in the coming months. Bajaj Auto and TVS Motors also made significant strides with 19% and 27% growth, respectively, contributing to a MoM rise of 9%. This surge in the 2W sector is indicative of an uptick in rural spending power, bolstered by robust exports and international dealership expansions. The PV segment experienced a modest YoY growth of 4%, with Maruti Suzuki eking out a 0.5% increase. The sector's performance is partially linked to reduced waiting periods and attractive discounts on new models. Mahindra & Mahindra stood out with an 18% gain, driven by the sustained demand for its SUV range, prompting a production ramp-up to approximately 600,000 units annually. The demand dynamics within the PV sector appear to be skewed towards SUVs, particularly those with a strong market reputation. Tata Motors witnessed a 2% YoY increment, although the segment saw a MoM decline of 7%, hinting at a short-term slowdown. The CV segment faced challenges, with a significant MoM drop of 22%. Despite this, Tata Motors showcased a robust YoY growth of 33%, outperforming peers like Ashok Leyland and M&M. Lastly, the tractor segment, represented by Escorts, saw a marginal YoY decrease of 1%, likely influenced by moderate Rabi crop yields. However, with forecasts predicting an above-average monsoon in FY25, a rebound in tractor sales is anticipated. The overall outlook for the Indian automotive sector remains positive, with rural market recovery and export strength playing pivotal roles in its growth trajectory.  

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