Auto sales growth is expected to continue across segments in May, according to a BloombergQuint poll of three analysts.
Anticipation of good monsoons and rising rural demand is expected to boost sales of tractors and two-wheelers. Analysts also expect double-digit growth for passenger and commercial vehicles.
A dealer channel check by Nomura indicated that inauspicious period from mid-May led to lower retail offtake. The companies, however, will use the opportunity to build up inventory given the healthy demand outlook.
Company-Wise Factors
Maruti Suzuki
- Strong sales growth expected on higher demand, aided by debottlenecking of capacity.
Mahindra & Mahindra
- Double-digit growth likely in utility vehicles.
- Robust rural demand to help tractor sales.
Tata Motors
- Growth expected to remain strong for both passenger and commercial vehicles.
- A ramp-up of Tata Nexon compact UV and recent launches to aid overall performance.
Ashok Leyland
- Lower base last year and pick-up in overall infrastructure-led demand to aid growth.
Hero MotoCorp
- Rising rural income and improved demand to lift overall sales volumes of the country's largest two-wheeler maker.
Bajaj Auto
- Higher two-wheeler exports and domestic three-wheeler sales to boost growth.
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