Maruti may report 100% growth in June sales; Bajaj Auto to lead two-wheelers

NEW DELHI: With lockdown restrictions easing, automakers are expected to report a recovery in sales in June.

The easing of restrictions has helped retail sales to recover up to 65-70 per cent of the normal levels, analysts said. Based on channel checks, Sharekhan said around 80-90 per cent of dealerships have opened fully, while some others opening up for limited hours a day.

“Our interactions with OEMs and dealers suggest strong demand from rural areas, though there has been a loss of sales on account of the marriage season forgone in May and June. We expect auto sales to normalise from Q2FY22 onwards. We expect most OEMs to reach 60-80 per cent of normal dispatches in June. As the retail markets might take a few more weeks to get fully operational, we expect dealers’ inventory to increase,” Sharekhan said.

Among segments, Motilal Oswal Securities said personal vehicles and tractors are the only segments where volumes would be higher in June than June 2019 level.

Two-wheelers are the worst impacted segment as the second wave has hurt rural and semi-urban markets. Rising fuel prices have further acted as a dampener for demand and as a result inquiry levels have not picked up as expected. Inventory in this segment remains high at 45-60 days, Motilal Oswal Securities said.

“The PV segment is better off, with inquiry levels recovering to 70-80 per cent of January-February levels. The demand for CNG vehicles remains strong, but supply chain issue has increased the waiting period for CNG vehicles. Maruti comes out as a major beneficiary of the increase in CNG model demand,” it sad.

Commercial vehicle dealers, meanwhile, are expecting demand recovery to take place towards the end of the September quarter, as infrastructure demand is low due to the monsoon.

Among the two-wheelers companies, Hero MotoCorp’s volumes are seen at 4.2 lakh units in June, down 7.9 per cent YoY. TVS Motors is expected to report a 33.7 per cent YoY fall in sales at 2.6 lakh units. On the flip side,

may see a 15.8 per cent growth in sales at 3.2 lakh units. Exports will continue to help the two-wheeler maker to keep the monthly run rate at decent levels, analysts said.

In the case of four-wheelers,

’s monthly sales are expected at 1,31,000 units in June, up 128 per cent YoY. and M&M are expected to deliver a 20-40 per cent growth in June.

“In tractor segment, M&M and Escorts, Sharekhan expects tractor sales to be around 30,100 units and 8,500 units, respectively. In the commercial vehicle segment, Tata Motors, Ashok Leyland, and

are expected to dispatch 14,000 units, 4,000 units, and 1,490 units, respectively, in June,” Sharekhan said.

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