Automobiles & Auto Components share price target

Auto Sales Update

In April, automobile wholesales of listed companies grew by 20.8% YoY to 15 lakh units. Exports also rose by 23.1% YoY to 2.4 lakh units. Domestic two-wheeler wholesales of listed companies increased by 27.2% YoY to 11.1 lakh units, while passenger vehicles rose by 3.6% YoY to 2.3 lakh units.

For Q4FY24E, we expect our OEM coverage to report a revenue growth of 15.0% YoY (+10.2% QoQ), driven by a YoY volume uptick for PV, 2-wheeler and 3-wheeler segments and a YoY increase in average realizations across all the coverage companies.
Realization growth has continued for all segments due to price hikes and improvement in product mix.

Retail sales in the automobile industry as a whole rose by 3.1% YoY in March 2024 to 21.3 lakh units. Two-wheeler retail sales increased by 5.4% YoY to around 15.3 lakh units, while car retail sales decreased by 6.2% YoY to 3.2 lakh units.

All segments of the industry, except the 2&3 wheeler segments, observed a YoY decline during this period.

In March, automobile wholesales of listed companies grew by 2% YoY to 14 lakh units. Exports rose by 33.9% YoY to 2.8 lakh units. Domestic two-wheeler wholesales of listed companies increased by 1.4% YoY to 9.7 lakh units, while passenger vehicles rose by 14.4% YoY to 2.4 lakh units.

Monthly Sales Data

The Government of India approved a new policy to boost the manufacturing of Electric Vehicles (EVs) in India. The policy will allow interested global EV manufacturers to import EVs at a lower import duty of 15.0%, reduced from 70.0% to 100.0% earlier.

The automobile industry's overall retail sales fell by 4.6% YoY in February 2024 to 20.3 lakh units. Two-wheeler retail sales dropped by 1.3% YoY to around 14.4 lakh units, while car retail sales decreased by 16.1% YoY to 3.3 lakh units.

All segments of the industry observed a YoY decline during this period.