Auto, Auto-Ancillaries Q3 Results Preview- Volume Growth Led By Strong Export, PV Sales Performance: DRChoksey

The near-term outlook for automobile retail remains cautiously optimistic, supported by strong rural demand and new launches expected to drive sales in two-wheelers, PV, and CV segments. However, weak urban growth and adverse macroeconomic factors may limit further sales growth in the upcoming quarters..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Deven Choksey Research Report.In Q3 FY25, the auto original equipment manufacturer sector showed mixed performance across segments. PV OEMs saw strong growth during the festive season, fueled by higher demand for hatchbacks and increased discounts particularly in Maruti Suzuki India Ltd.In contrast, the two-wheeler segment showed weakness, with flat domestic sales YoY, indicating a post-festive slowdown. Commercial vehicle demand remained subdued, as top OEMs posted flat YoY growth. In Q3 FY25, sales volume varied across categories within our coverage. Bajaj Auto’s two-wheelers posted flat growth of 1.4% YoY, reflecting a slowdown in demand post-festive season. PV sales, however, rose by 4.7% YoY, driven by strong festive season demand, which helped recover from a weaker first half of the fiscal year. The CV segment continued to face challenges, with overall market weakness despite positive demand in the buses segment. In our coverage, export sales demonstrated robust growth of 24.4% YoY (17.8% QoQ). This recovery in export markets supported overall sales volume for Q3 FY25, helping to offset the weaker domestic performance, which was declining by 2.3% YoY. The near-term outlook for automobile retail remains cautiously optimistic, supported by strong rural demand and new launches expected to drive sales in 2W, PV, and CV segments. However, weak urban growth and adverse macroeconomic factors may limit further sales growth in the upcoming quarters. For Q3 FY25E, in our OEM coverage we expect, overall revenue to grow 9.6% YoY (12.7% QoQ), leading by Maruti Suzuki which expected to grow 18.0% YoY, driven by strong demand in the PV-SUV segments, while Tata Motors is expected to grow 8.0% YoY, supported by a positive JLR outlook for H2 FY25E. However, Ashok Leyland is likely to experience a 2.8% YoY decline due to weak medium and heavy commercial vehicle demand. After strong growth in Q2 FY25, Bajaj Auto's sales growth is expected to moderate, with a 9.7% YoY increase, driven by steady export demand in the two-wheeler and three-wheeler segments..Click on the attachment to read the full report:.What's In Store For IT, Cement, O&G, Auto, Pharma Sector & More Ahead Of Q3 Results: Motilal Oswal's Analysis.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Auto, Auto-Ancillaries Q3 Results Preview- Volume Growth Led By Strong Export, PV Sales Performance: DRChoksey

Maruti Suzuki is DRChoksey's top stock pick in the sector, benefiting from rural recovery and an attractive valuation.

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP