July 2020 was the second consecutive month of robust sequential improvement in the auto space, as further relaxations post lockdown, pent up demand and channel restocking by OEMs led to a healthy showing in all segments (bar 3-W). The tractor industry continued to perform ahead of other segments, with key players posting positive YoY growth for July.
For tractors, healthy rural cash flows (remunerative Rabi crop, encouraging Kharif sowing, good monsoon progress) benefited M&M and Escorts, with total volumes rising 27.1% YoY and 9.5% YoY, respectively. For the month, Escorts witnessed supply side disruption of a key component and operated at sub-par utilisation levels. The 3-W segment, however, lagged far behind the rest of the industry.
For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_Monthly_AutoVolumes_Aug20.pdf