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This Article is From Apr 02, 2024

Auto Retails - No Major Surprises; Base Effect Catching Up For Personal Vehicles: ICICI Securities

Auto Retails - No Major Surprises; Base Effect Catching Up For Personal Vehicles: ICICI Securities
(Source: Lenny Kuhne/Unsplash)
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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.

ICICI Securities Report

Domestic two wheeler retails in March 2024 (1.5 million units) were up ~6% YoY/month-on-month, with marriage and harvesting season led demand set to come in April-May.

Electric -two wheeler retails showed strong growth, up 65% MoM at 136000 units versus last 12 months mean of ~74000 units per month – higher discounts/price cuts sustainability of such a big number need to be monitored going ahead.

Personal vehicles stood at ~0.31 million units, down 7% YoY/ 3% MoM, largely in line with the past 12 months mean levels, implying base effect is catching up, with limited legs in retail demand incrementally in the near term driving growth.

ICE three wheelers continued to grow, up ~36% YoY at ~63000 units. Tractor retails were down 3% YoY at ~77000 units and medium and heavy commercial vehicle were down 6% YoY.

We expect M&HCV retails to decline till H1 FY25E due to elevated base on account of BS6 phase-two transition.

Click on the attachment to read the full report:

ICICI Securities Automotives Retail Sector Update.pdf
VIEW DOCUMENT

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