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In January 2024, automotive OEMs reported robust volumes, driven by PVs and 2W, while Tractors and CVs saw a slight decline. PVs particularly benefited from positive responses to recent launches, with strong order books reflecting this trend. Notably, the 2W segment experienced remarkable 24% YoY growth, attributed to rural recovery and increased exports. Bajaj Auto led this growth with a 24% YoY increase in sales. Mahindra & Mahindra saw a 24%YoY increase in PV volumes. PVs grew over 15%, outpacing the flat performance of CVs on a yearly basis, though CV volumes increased MoM. Long-term sentiment remains positive due to infrastructure activity. Rising demand from STUs and private operators continues to drive steady growth in the Bus segment. Near-term PV wholesales are expected to hinge on responses to recent launches and positive customer sentiment. Tractor sales declined in January due to delays in Rabi sowing and lower water reservoir levels, particularly in central and southern regions, dampening rural sentiment. However, with improved Rabi sowing and the approaching harvest season, demand momentum is expected to recover in the coming months.

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