Two-wheeler makers Hero MotoCorp Ltd. and TVS Motor Co. are seen posting double digit sales growth in the month of July, while Maruti Suzuki India Ltd. is expected to continue its outperformance in the four-wheeler space.
Hero MotoCorp's sales are seen touching the six lakh mark in July, according to a BloombergQuint poll of analysts. TVS Motor is likely to register 11 percent growth in sales, while continued demand for Royal Enfield bikes is seen pushing Eicher Motors Ltd.'s sales higher by as much as 18 percent.
Four-Wheeler Market
Maruti Suzuki's July sales are seen rising 11 percent to 1.52 lakh units, outpacing its listed rivals in the four-wheeler space. Ashok Leyland Ltd. is likely to report a 17 percent increase in sales in July, while Tata Motors Ltd.'s sales may rise 3 percent.
Automakers In GST Regime
Efforts by dealers to rebuild inventories after Goods and Services Tax-related de-stocking are expected to boost passenger vehicle sales in July, according to Nomura. Inventory build up ahead of the festive season is also likely to aid wholesales, the brokerage added.
Here are the key takeaways from Nomura's report on July auto sales:
- Passenger vehicle industry is expected to report around 7 percent growth.
- Medium and heavy commercial vehicle segment industry will see double digit volume growth as companies build up Bharat Stage-IV compliant vehicle stocks.
- Two-wheeler sales are expected to rise nearly 10 percent supported by rural demand.
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