Domestic passenger vehicle sales likely to rise over 30 pc in Nov: Report

Mumbai: Domestic passenger vehicle sales are expected to rise over 30-per cent year-on-year in November, driven by large order book and higher vehicle production while the commercial vehicle segment sales volume could grow in double digits during the month, a report said on Friday.

Tractors volumes, however, are likely to remain muted on inventory destocking with dealers, brokerage firm Emkay Global Financial Services said in a report.

It also said that vehicle discounts have reduced on a sequential basis and remain significantly lower than the elevated levels seen in the past.

Automobile makers in the country are set to publish vehicle sales data for November on December 1.

The PV segment is likely to record higher volumes on account of the large order book while the CV and two-wheelers are likely to maintain their positive growth momentum in November, Emkay Global said.

Projecting over 30 percent growth for the passenger vehicle segment in the current month over the same month last year, the brokerage firm the domestic volumes are estimated to grow by 64 percent Y-o-Y for Mahindra & Mahindra Ltd and 51 percent for Tata Motors.

Market leader Maruti Suzuki is expected to log 18 percent growth in passenger vehicle sales in November over the corresponding month of 2021, as per the report.

CV industry’s volumes should grow in double digits at over 15 percent year-on-year with robust demand in both passenger and cargo segments, said and added that the e-way bill trend indicates better freight availability compared with last year.

Emkay Global expects positive growth at 41 percent Y-o-Y for Ashok Leyland, 36 per cent for Eicher Motor-Volvo Eicher Commercial Vehicle, and 13 percent for M&M, besides and 8 per cent for Tata Motors in the domestic market.

Ashok Leyland remains an outperformer due to favourable mix, new products, and aggressive marketing efforts, it added.

The brokerage firm also forecasts an over 10 percent improvement in 2-wheeler volumes in the month amid indications that urban demand is better than rural and scooters are doing well in comparison to motorcycles.
Emkay Global said it expects a 2 per cent year-on-year increase for M&M and flat performance for Escorts in domestic volumes.