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Auto Volumes: Festive cheer lifts overall sales volume for October 2024

ICICIdirect Research 08 Nov 2024 DISCLAIMER

Wholesale volume prints for the month of October 2024 were broadly healthy led by robust double digit volume growth in 2-W and tractor domains.

CV space continued to witnessed a decline while volumes were broadly flattish in the PV domain.
OEM’s commentary on festive as well as upcoming wedding season was upbeat especially in the PV space which should result in normalised channel inventory going forward.

Key outperformers within key segments were Eicher Motors in the 2W space (volumes came in at an all-time high figure of 1.1 lakh units) while M&M outperformed in PV, CV as well as tractor domains.

More importantly, Vahan registrations (retail sales) for October 2024 were robust and totalled 28.3 lakh units, up 32% on YoY basis. Within categories, 2W sales were up 36% YoY at 20.65 lakh units whereas 3W showed a growth of 11% YoY at 1.22 lakh units. CV volumes for the month were up by 6% YoY at 97k units while PV sales rose by 32% YoY at 4.83 lakh units.

YoY rise in October retail sales can be attributed to the robust demand during the festive season. Festivities like Navratri and Diwali which accounts for 30%-35% of total auto sales, both occurred in this month. The rural market once again played a leading role in driving growth, particularly in the 2W and PV segments.

For FY25E, we expect growth trajectory to be led by the 2-W space with high base limiting growth in PV and CV categories.

Our Top bet in OEM space is M&M

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