Sales of passenger vehicles stabilize in Oct, 2-W jumps 14%: Data
In October, amid the festival season, sales of passenger vehicles stabilized and saw a flat 0.9% rise, while the two-wheeler segment witnessed over 14% jump.
Wholesale volumes of several automobile sgements are estimated to grow on a year-on-year basis in December, said a report by Motilal Oswal Financial Services.
As per the report, in December 2020, wholesale volumes are estimated to grow at 14.4 per cent for two wheelers on a low base and 5.4 per cent for passenger vehicles due to the year-end sales.
Similarly, wholesale volumes for tractors are expected to grow. The volume is expected to zoom by 38.4 per cent YoY on robust demand and lower base.
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However, commercial vehicle volumes are likely to decline by 2.8 per cent.
“Discounts currently stand at 50 per cent as compared to last year,” the report said.
“Inventory is lower than normal for PVs and tractors, leaving headroom for higher inventory filling in coming months. Wholesales are expected to grow on a low base in Dec’20, catering to the spillover demand from the festive season and inventory refilling.”
According to the report, two-wheeler inventory currently stands at 30-45 days, PVs inventory, while entering last week of December, remain at minimal levels (10-20 days), with a waiting period of 4-6 weeks in fast selling models.
“M&HCVs are seeing strong demand from the ‘Infrastructure or Construction’ segment on the back of resumed government spending on infrastructure, whereas inquiries from haulage are better than last year.”
“Demand for tractors continues to remain strong, with a growth in retails and supplies just meeting demand. Overall consumer sentiment has improved, but the market remains cautious fearing a second COVID-19 wave.”
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