Automobiles & Auto Components share price target

Hero Motocorp (HMCL) reported another month of subdued volume going against the peer set trend of improved volume MoM, reporting a volume decline of 6%/10% YoY/MoM at 357k units. Motorcycle sales declined 6% YoY vs scooters being up 2%.

Auto - Q3FY23 - Earnings Preview

Retail sales in the automobile industry saw a 31.8% MoM dip to 16,22,317 units in December 2022 after the record sales in November. Retail sales of two-wheelers and cars fell 38.7% MoM to 11,33,138 units and 6.9% MoM to 2,80,016 units respectively.

On a year-on-year basis, gains were seen across all auto segments except two-wheelers.

Q3FY23 has been a quarter of weak 2W and PV wholesales due to de-stocking as against strong CV and tractor volumes. Though retail demand across segments has been robust, driven by festive season, harvesting season and year-end discounts, personal mobility segment wholesales were subdued for majority players.

Hero Motocorp (HMCL) reported wholesale volumes at ~394k units, up 1% MoM (flat YoY). Motorcycle volumes rose 1% MoM vs scooter down 2% MoM.

Auto Monthly Update - Dec 22

Automobile domestic wholesales of listed companies rose 4.2% YoY on a low base, but fell 5.9% MoM to 10,59,023 units in December. Exports dipped 28.7% YoY to 2,25,535 units