Suman Chowdhury, Chief Analytical Officer, Acuité Ratings & Research
"SIAM data on factory despatches in Oct 2020 highlights that higher demand expectations during the ongoing festive season, greater need to own personal vehicles and avoid public transportation in the pandemic environment along with higher rural incomes are driving growth in the domestic automotive sector at this point in time. The domestic volumes of PVs have grown by 14.2% YoY in Oct 2020 with a 20.5% increase particularly in the UV segment which has been gradually scaling up as a product category supported by new launches at competitive prices. The 2W market also continues to witness a buoyancy with the domestic motorcycle segment registering a 23.8% growth, reinforcing the factors of personal mobility and rural demand. However, the sustainability of such a trajectory will depend on actual dealer level sales in the current quarter. It is also noteworthy that the exports of 2Ws have grown with a YoY print of 25.6% in Oct 2020 and if the momentum continues, it will clearly strengthen India's position as one of the largest exporters of 2Ws in the world."