Auto volumes to grow by 43% YoY in January

Aggregate auto volumes for the 3 major passenger car OEMs are expected at ~16.9k units in Jan-2021, which would amount to YoY growth of ~43%.

Pak Suzuki (PSMC) is expected to be the outperformer during the month, with YoY growth of 62% expected. This would only be the third month in 2 years for the assembler to show positive YoY growth, with the last two being Mar-2019 (23% YoY) and Nov-2020 (16% YoY).

Growth is anticipated to be led by the 660cc Alto (Jan’21E: 115% YoY), along with strong support from Wagon-R and LCVs. On the other hand, Cultus could witness a decline in volumes on YoY basis, potentially on the back of launch of Changan Alsvin sedan in the same price category.

Indus Motors (INDU) and Honda Atlas Cars (HCAR) are expected to see volumetric increases of 36% YoY and 11% YoY, respectively. With new launches expected for Corolla in the 1.8L segment and a potential entry of the new generation of Honda City, volumes for these premium segment OEMs are anticipated to regain the vigour of previous months going forward.

Among tractors, Millat Tractors (MTL) is expected to post growth of 194% YoY during January, taking 7MFY21 growth to 84% YoY, which bodes well for the manufacturer, as well as related auto parts industries.

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