Monthly Auto Volumes - September 2020 - ICICI Securities

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

Source : Equity Bulls

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