Automobiles Sector Check - Premiumisation Trend Visible In Two-Wheelers, Passenger Vehicles: Motilal Oswal

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..Motilal Oswal Report.We have analyzed model-wise data for two-wheelers and passenger vehicles for year-to-date-FY24. Following are the key highlights:In motorcycles, the 100cc segment’s contribution has now fallen to 48.6% in YTDFY24 from 56.9% in FY20. As a result, Hero MotoCorp Ltd. has lost its market share in domestic motorcycles by 300 basis points to 43% for YTDFY24.In the 125cc segment, TVS Motor Ltd. has been the biggest outperformer, with its market share rising by ~680 bp to 15.1%. In the 150-250cc segment, Bajaj Auto Ltd. has been the biggest gainer, with a 390 bp jump in market share to 34.6%.In the 250cc+ segment, Royal Enfield has lost 400 bp share to new launches from Harley Davidson (through Hero MotoCorp) and Triumph (through Bajaj Auto). In PVs, we believe Maruti Suzuki India Ltd. has done well to sustain its share at 42%, despite the fact that the car segment, which contributes to 57% of its mix, has declined by 12% YoY. For Maruti Suzuki, Fronx and Grand Vitara continue to drive utility vehicle growth, while Jimny is not doing well. Mahindra and Mahindra Ltd.’s biggest growth driver in UVs in FY24 has been Scorpio. For Hyundai, the launch of Exter has helped boost volumes in the compact SUV segment without materially cannibalising Venue sales. While we expect two-wheelers to continue to outperform other segments even in FY25, this seems fully priced in after the recent strong rally in two-wheeler stocks. M&M is our top pick among Auto original equipment manufacturers as we expect new launches to continue to help the company drive market share gains in PVs..Click on the attachment to read the full report:.Metals, Mining, Pipes - Value Addition, Backward Integration Is A Growth Theme: Systematix.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.

Automobiles Sector Check - Premiumisation Trend Visible In Two-Wheelers, Passenger Vehicles: Motilal Oswal

M&M and Maruti Suzuki outperform in passenger vehicles; Bajaj Auto and TVS Moto in two-wheelers

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