Automobiles & Auto Components share price target

Automobile wholesales of listed companies rose 16.6% YoY to 13.7 lakh units in February. Exports were up 35.4% YoY to 2.7 lakh units. Domestic two-wheeler wholesales of listed companies increased 20.6% YoY to 9.5 lakh units, and passenger vehicles rose 15.1% YoY to 2.5 lakh units.

Nifty Auto Index is trading at 23.2x 1-year forward P/E vs. a historical 2-year average of 27.6x and historical 1-year average of 24.4x. The domestic 2W industry is expected to see growth of 8.0% to 10.0% YoY in the coming quarters, to be led by continued growth in the 125cc+ segment and new launches.

Top Sector Ideas - Auto and Auto Ancillaries - Q3FY24

The automobile industry's overall retail sales rose by 15% YoY in January 2024 to 21.3 lakh units. Two-wheeler retail sales were up 15% YoY to around 14.6 lakh units, while car retail sales increased by 13.3% YoY to 3.9 lakh units. All segments of the industry observed a YoY rise during this period.

As people get richer, one of the big purchases they eye is a car. And usually the larger, the better. So as India’s GDP growth accelerates, the Indian automotive industry is expected to help the country leap from the fifth to the third-largest economy.

Lifestyle Inflation Index: How lifestyle inflation rate has moved. Trade: Foreign Trade (April-January). Automobiles: Q3FY24 Review Healthy volumes on strong PV sales, 2W revival. IRMENERG: Management meet takeaways Volume growth potential

Automobile wholesales of listed companies rose 17.7% YoY to 13.8 lakh units in January. Exports went up 17.3% YoY to 2,10,359 units. The problems in the Red Sea have limited freight movement, resulting in lower exports across all categories

Domestic two-wheeler wholesales of listed companies increased 22.8% YoY to 9.5 lakh units, and that of passenger vehicles rose 15.4% YoY to 2.6 lakh units.

SALES UPDATE

As per data released by the Society of Indian Automobile Manufacturers (SIAM), for Q3FY24E, the 2-wheeler (2W) segment saw a growth in industry wholesale volumes of 22.6% YoY/ 2.9% QoQ. 3-wheelers (3W) industry wholesale volumes were higher by 35.2% YoY but lower by 4.1% QoQ. Passenger Vehicles (PV) industry volumes grew by 8.3% YoY but declined by 5.8% QoQ.