Passenger vehicle sales are expected to be robust in July, driven by a large order book and production ramp-up, while commercial vehicle volumes may remain in an uptrend, a report said on Thursday.
However, tractor volumes are likely to decline due to a high base and uneven spread of the monsoon, according to brokerage firm Emkay Global Financial Services, which has retained a positive view on the auto sector.
Emkay Global also expects an improvement in two-wheeler sales on the back of higher production and inventory build-up with dealers.
Passenger vehicle segment should witness a robust growth on a large order book and production ramp-up, with automakers such as Tata Motors, M&M and Maruti Suzuki expected to log 49 per cent, 28 per cent and 8 per cent volume growth, respectively, in July, the brokerage firm said.
For the two-wheeler segment, the brokerage estimates a 35 per cent improvement in domestic sales for Eicher Motor-Royal Enfield, 6 per cent each for TVS Motor and Hero MotoCorp.
Bajaj Auto is likely to see a 2 per cent improvement in the domestic two-wheeler volumes in the month, Emkay Global said.
In the previous month, the passenger vehicle domestic sales grew 19.06 per cent year-on-year at 275,788 units. Two-wheeler sales during this period surged 23.4 per cent to 13, 08,764 units over the same month last year, while three-wheeler sales rose 184 per cent year-on-year to 26,701 units, as per SIAM (Society of Indian Automobile Manufacturers) June data.
Commercial vehicles should remain in an uptrend, with robust growth in passenger and cargo segments. E-way bill trends indicate better freight availability compared with last year, Emkay Global said.
The brokerage firm said it expects a positive 58 per cent year-on-year growth in domestic sales for Ashok Leyland, 55 per cent for Eicher Motor-Volve Eicher Commercial Vehicle, 42 per cent for Tata Motors, and 13 per cent for M&M in the domestic market.
Tractor volumes are likely to decline due to a high base and uneven spread of the monsoons, it said and added that it expects a 13 per cent decline in domestic volumes for M&M and 16 per cent for Escorts.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
You’ve hit your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Quarterly Starter
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Access to Exclusive Premium Stories Online
Over 30 behind the paywall stories daily, handpicked by our editors for subscribers


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app