Automobiles & Auto Components share price target

We hosted the management of two auto ancillary companies in our Nuvama Emerging Ideas Conference 2023,' namely CIE Automotive India (CIEINDIA) and SJS Enterprises (SJS).

Retail sales for the automobile industry reached a record high in November 2023, up 18.5% YoY to 28.5 lakh units. Two-wheeler retail sales increased by 21.1% YoY to around 22.5 lakh units, while car retail sales rose by 17.2% YoY to 3.6 lakh units.

All segments of the industry, except for CVs and tractors, observed a YoY rise during this period.

Automobile wholesales of listed companies rose by 28.5% YoY, but declined by 17.4% MoM to 14.5 lakh units in November. Meanwhile, exports were up 5% YoY to 2,34,481 units.

Domestic two-wheeler wholesales of listed companies increased by 38.9% YoY to 10.6 lakh units and passenger vehicles rose by 5.5% YoY to 2.2 lakh units.

MSIL’s total sales volumes for the month of November 2023 increased by 3.4% YoY to 1,64,439 units. This meant a decline of 17.5% MoM. Total Domestic sales grew by 1.6% YoY while they declined by 20.2% MoM. Export sales grew by 16.3% YoY/ 4.6% MoM. Within Domestic sales, SUV and Vans saw strong growth traction of 50.5% and 42.4% YoY, respectively. Mini/ Compact/ Midsize sales declined by 45.4%/ 11.2%/ 82.1% YoY, respectively.

SAIL: Profit outlook restrained; maintain HOLD. Automobiles: Q2FY24 Review Cruising along. Cement: Q2FY24 Review Cost savings lift Q2 margins; volumes to bolster H2

Top Sector Ideas - Auto and Auto Ancillaries - Q2FY24 Review

The automobile industry saw a 7.7% YoY decline in retail sales, but rose by 12.5% MoM in October 2023 to around 21.2 lakh units. Retail sales of two-wheelers were down by 12.6% YoY to 15.1 lakh units, while that of cars fell by 1.4% YoY to 5.3 lakh units.

All segments of the industry observed a MoM rise during this period.

In Sep’23 and Oct’23 combined, average retails for PVs were up ~5% YoY versus flattish 2Ws. Domestic 2W retails in Oct’23 (1.51mn units) were up 15% MoM driven by festive demand, after being range bound at ~1.3mn for the last four months. E-2W retails improved, +17% MoM to ~75k units versus CY23TD’s mean of ~69k units.

Automobile wholesales for listed companies rose 23.3% year-on-year to 17.5 lakh units in October, while exports fell 1.1% year-on-year to 240,986 units.

Domestic two-wheeler wholesales for listed companies were up 26.2% year-on-year to 12.6 lakh units, and passenger vehicle sales rose 19.4% year-on-year to 2.6 lakh units.