Maruti, M&M And Eicher Are Citi's Preference After November Sales Data — Here's Why
Maruti Suzuki's strong performance in the SUV segment is a key driver of its overall growth, offsetting declines in other segments, Citi said.
Indian auto companies reported steady November 2024 sales, with year-on-year growth seen in most companies except Hero MotoCorp Ltd. Citi analysed the cumulative volumes for September-November 2024, which indicated early- to mid-double-digit growth for two-wheeler companies and modest growth for Maruti Suzuki India Ltd.
Apart from the Swift-maker, Mahindra & Mahindra Ltd., and Eicher Motors Ltd. are its other preferred stocks. Here is a look at why.
November Sales Highlights
Maruti Suzuki reported overall volumes growth of 10% compared to last year, driven by 20% growth in SUV volumes. Another positive pivot was strong export growth of 25%. Overall volumes in the September-November period were up 5% YoY.
Eicher Motors’ Royal Enfield reported 2% volume growth, led by a 96% YoY growth in exports compared to last year. Volumes in November grew 15%, compared to last year.
Hero MotoCorp had a disappointing sales month with domestic two-wheeler volumes down 8% YoY and overall two-wheeler volumes down 6%. Total volumes rose 10% for domestic market, while total sales grew 11% YoY.
TVS Motor had a strong month with overall two-wheeler volumes up 11% YoY, driven by 34% growth in two-wheeler exports. For September-November 2024, overall two-wheeler volumes rose 16% YoY.
Festive Season
The festive season impact has been one of the reason for a mixed performance in November. October became the primary month for the festive season sales boost, impacting November sales figures, according to Citi.
The shift in the festive season timing significantly influenced monthly sales comparisons, making cumulative figures between September-November more insightful for year-over-year trend analysis, Citi said. Despite Hero's decline, the two-wheeler segment showed overall growth, according to the brokerage, with TVS and Eicher Motors experiencing double-digit increases in volumes.
Maruti Suzuki's strong performance in the SUV segment is a key driver of its overall growth, offsetting declines in other segments. Exports played a crucial role in the growth of several car and bike makers, particularly Eicher Motors and TVS Motor, Citi pointed out.
Hero MotoCorp's weaker performance may be partially attributed to inventory destocking following the festive season.
Citi prefers Maruti Suzuki, Mahindra & Mahindra, and Eicher Motors in the Indian auto OEM space.
