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In Sept, overall wholesales volume showed healthy performance with CV growing double digits & 2W/PV vehicles growing on a decent pace due to strong demand of festive season. MHCV demand was robust. AL MHCV volume grew by 13% YoY and 31% on sequential basis. TTMT CV volumes grew by 13% YoY and 21% on MoM basis. Looking ahead, continue infrastructure thrust by the government and improving consumption auger well for the CV industry. While rural demand remains to be a key monitorable, as monsoon has been below average. PV saw a decent growth both on sequential and yearly basis. SUV sales continue to dominate the passenger vehicle market with OEMs reporting highest sales in SUV segment. M&M reported its highest sales for SUV at 41,267 units. With strong order book demand is expected to continue. Domestic 2W wholesales were strong on sequential basis with OEMs posting double digit sequential growth. 2W export sales have also started to recover, apart from Bajaj auto both TVS and HMCL saw a decent pickup in its export. Near-term 2W domestic demand is contingent on strong festive season and eventual revival in rural consumption. E2W volumes continue to be impacted by reduction in FAME subsidies. Tractor volumes declined on YoY basis during Sept'23. M&M's domestic tractor sales stood at 42,034 units -11% YoY and +104% MoM. Company indicated that normal rainfall in September; pickup in Kharif sowing and the start of festive season is expected to drive positive sentiment. Escorts reported domestic sales of 10,861 units down 11% YoY and up 95% MoM. Company indicated with improved rainfall in September, likely good Kharif harvest and with overall macroeconomic factors, it expects growth momentum to pick up in the festive months of October & November.

Automobile Sales September-23

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