The auto industry continued its slow momentum in June with single-digit volume growth, due to low growth in two-wheelers, modest volume of commercial vehicles (CVs) and fall in multi-purpose vehicles (MPVs).
While companies including Mahindra and Mahindra Ltd, Maruti Suzuki India Ltd and Honda Motorcycles and Scooters India (HMSI) registered robust volumes, Tata Motors Ltd, Bajaj Auto Ltd and TVS Motor Co. Ltd saw negative growth. This suggests that the growth of about 20% registered in March is unlikely to continue.
Inventory at dealers’ end remained higher than normal, indicating low retail sales.
The two-wheeler segment registered 6.7% year-on-year (y-o-y) growth in June led by a 19.2% y-o-y growth in scooter sales. While the motorcycle segment witnessed 4.5% growth, moped sales grew 2% y-o-y. The commercial vehicles segment witnessed a muted 8.8% y-o-y growth with 12.7% y-o-y decline in medium and heavy commercial vehicles sales.
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The passenger vehicle segment rose 13% y-o-y in June due to growth of 44% y-o-y in utility vehicles, and 11.5% in cars, while MPVs remained subdued in the month.
Edited excerpts from a report by Karvy Stock Broking. Your comments are welcome at firstname.lastname@example.org
Graphic by Ahmed Raza Khan/Mint