- 15 Apr 2024
- ICICI Securities
SIAM RELEASES SALES VOLUME NUMBERS FOR FY24
News: As per the data released by SIAM, total domestic sales volume in the automobile space grew 12.5% YoY in FY24 to 2.4 crore vehicles while exports registered a decline of 5.5% YoY to 45 lakh units. In terms of vehicle category, 2-W witnessed a domestic growth of 13.3% YoY to 1.8 crore units (motorcycle grew 13.9% while scooters grew 12.5%) while Passenger Vehicle volumes grew 8.4% to 42.2 lakh units (Passenger car declined 11.4% while UV space grew 26% YoY). Domestic sales of Commercial Vehicles were broadly flattish at 9.7 lakh units (M&HCV grew 4% while LCV declined 1.5%) and 3-W volumes grew healthy 42% YoY to 6.9 lakh units.
Views: PV and 2-W segment surprised positively for the year largely driven by robust growth witnessed in Q4FY24 at 12% and 25% respectively. Share of UVs in total PV sales rose to 60% vs. 52% last year. Within the CV space, buses witnessed a healthy 27% YoY growth for FY24. On the exports front volume recovery in Q4FY24 was encouraging at 23% led by 2-W space volume growth of 31% YoY. Going forward, for FY25E, we expect growth trajectory to be led by the 2-W space with high base and impending elections limiting growth in PV and CV categories. Consequently, our top bets in the auto space will be 2-W ancillary names such as Gabriel India, Sansera Engineering, Pricol Ltd. among others given that 2-W OEMs had already run-up in the past 6 months.
Impact: Neutral