CV Sales to Continue Growing, Other Segments to See Decline - Report

As per a study that was conducted by Emkay Global, Commercial Vehicle sales in the country look all set to continue growing in spite of the hardships brought by the pandemic

Emkay Global, a financial services company, recently did a channel check in order to understand the sales volumes' estimate for the ongoing month. As per the findings, the commercial vehicle segment should post positive sales growth this month.

On the other hand, the sales of passenger vehicles could take a hit due to the chip shortage even though they will be higher on the MoM basis. Even the two-wheeler and tractor sales could witness a decline owing to lesser-than-usual demand in the rural market and even due to the higher base owing to pent up demand in 2020. As was expected, the festive season didn't bring a respite to the manufacturers owing to rather lacklustrous sales in the passenger vehicle, two-wheeler and tractor market.

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Emkay Global has a positive view of the auto sector as it expects an upturn in sales in the next three years. Emkay Global retains a positive view on the auto sector, underpinned by expectations of a cyclical upturn in the next three years. The brokerage house is betting big on automakers like Hero MotoCorp, Maruti Suzuki, Ashok Leyland and Tata Motors. It's also expecting good growth of Motherson Sumi, Bharat Forge) and Ramakrishna Forgings.

The commercial vehicle market is expected to continue growing on the back of the high demand of Light Commercial Vehicles, Tippers and even replacements for MAVs. The financial services firm expects a 23% growth for Eicher Motors, 11% for Tata Motors and 2% for Ashok Leyland on YoY basis. On the other hand, Mahindra could see a dip of 19% owing to delayed dispatches due to the semiconductor chip shortage.

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Meanwhile, the 2-wheeler industry volumes are expected to be lower than 2020 owing to the reduction in the demand in rural areas and even due to the high base set last year because of the pent up demand. Additionally, the shortage of semi-conductor chips has had a detrimental effect on the dispatches from Royal Enfield. The firm expects RE's volumes to reduce by 24% on YoY basis, 20% for Hero MotoCorp, 10% for Bajaj Auto and 15% for TVS Motors.

Emkay Group also estimates the domestic volumes of the private four-wheeler market to grow by up to 2% for Mahindra and 39% for Tata Motors on YoY basis, while market-leader Maruti Suzuki could see a decline of 15%. In the tractor industry, Emkay expects domestic volumes to decline by 11% for M&M and 17% for Escorts.

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So, what's your view on the estimates by Emkay Global? Do let us know through the comments section below. Join our 91Wheels Telegram and 91Wheels Whatsapp group to know more about vehicles, conduct discussions on your favourite ride and much more! Also, you can subscribe to our Youtube channel for video content on the latest from the world of cars and motorcycles.