Continued sequential improvement was the overarching theme of October wholesale auto dispatches, with several major OEMs posting record volumes partly attributable to healthy demand prospects, while the rest was owing to channel inventory build-up for ongoing festive season. Segments dictated by discretionary spend (2-W, PV) led with healthy double-digit growth while there were initial signs of a turnaround on CV side. Tractor segment also performed well, buoyed by sustained industry tailwinds.
For tractors, ongoing supportive factors (remunerative crop prices, normal monsoons) helped key players like M&M and Escorts post ~1-2% domestic growth. While growth print appears muted, it should be noted that October is a seasonally strong month for tractors and absolute volumes were high. On the 3-W front, aversion to public transport, prevailing shutdown of schools, offices and tighter financing conditions remain headwinds. Major players posted declines ranging from 17-56% YoY.
For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_Monthly_AutoVolumes_Nov20.pdf