Auto sales in June displayed a mixed trend with the passenger vehicle sales declining, while two-wheeler sales rose, brokerages noted. Eicher Motors Ltd., Mahindra & Mahindra Ltd., and TVS Motor Co. outperformed while Hyundai Motor India Ltd., Maruti Suzuki India Ltd., and Tata Motors Ltd. lagged.
The passenger vehicle industry saw its wholesales fall 7% year-on-year in June, Jefferies said in a note. There was also a wide growth divergence across original equipment manufacturers in passenger vehicle segment. Domestic wholesales rose 18% on the year for Mahindra & Mahindra, but fell 12–15% year-on-year for Maruti Suzuki India Ltd., Hyundai Motor India Ltd., and Tata Motors Ltd.
However, registration in passenger vehicle industry grew 6% on the year, Jefferies said.
Mahindra & Mahindra retained its second position in passenger vehicles for third consecutive month. Share of battery electric vehicle in passenger vehicle registration rose 30 basis points on the month to 4.4%, Jefferies said.
Tata Motors remained the leader in electric vehicles, although its market share has slipped from 71% in financial year 2024 to 36% in the first quarter of the current financial year. Morris Garages and Mahindra & Mahindra saw its market share advance to 30% from 23%, respectively, Jefferies said.
China's rare-earth curbs are starting to weigh on electric vehicle production, Morgan Stanley said.
Morgan Stanley said that channel de-stocking drove mid-to-high single-digit decline in passenger vehicle wholesales while two-wheelers grew mid-single digits.
Two-wheelers continued to grow ahead of passenger vehicles. Two-wheeler retail sales grew 5% on the year during the month which supported stronger growth in rural regions compared to urban, Morgan Stanley said.
Tractor wholesales increased 10% on the year in June, Jefferies estimated. Mahindra & Mahindra continued to outperform with 13% on the year growth in the month. Tractor registrations also advanced 8% on the year in June. However, tractor industry's wholesales decline 12% on the year in June, meanwhile registrations remained flat on the year in June.
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