September 2020 wholesale volumes for the auto OEM space were strong across the board. The ongoing sequential improvement trend continued during the month, with the upcoming festive period (October-November) likely acting as a catalyst for higher dispatches. Retail volume trends, while on the upswing, remain well below wholesale prints (ex-tractors), indicating inventory re-stocking at the dealer end in anticipation of healthy on-ground offtake in the coming weeks.
For tractors, supportive industry tailwinds (normal monsoon progress, healthy Kharif sowing, continued policy support) helped key players like M&M and Escorts post smart growth on a YoY basis. Total volumes at the two companies rose 17.2% YoY and 9.2% YoY, respectively. The 3-W segment, however, lagged far behind the rest of the industry amid persistent worries over public transport (~90% of industry served by passenger category). Bajaj Auto, M&M reported volume declines of 44.2% YoY, 92.2% YoY, respectively. Atul Auto's volumes were down 69.2% YoY.
For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_Monthly_AutoVolumes_Oct20.pdf