Auto Numbers - April 2021 - Acuité Ratings & Research

Mr.Suman Chowdhury, Chief Analytical Officer, Acuité Ratings & Research

PV Segment

"The data released by the PV players for April 2021 reflects a moderate slowdown in demand primarily due to the emergence of the second Covid wave in the country and the impact of the various local level lockdowns on dealership activity. It may be noted that the sales are not comparable on a YoY basis in any case as there was hardly any activity in the whole sector in April 2020 due to the stringent national lockdown triggered by the onset of Covid. The overall PV volumes for the top 7 companies recorded a decline in domestic sales of around 8% on a MoM basis which doesn't actually reflect any major slowdown given the disruptive impact of Covid 2.0 in addition to the typical dip in sales in April following March. MSIL, the market leader reported a sequential decline in domestic PV sales of only around 3%; similarly, the volumes of the other key players namely Hyundai, Kia Motors, and Tata Motors also dropped by 7%, 16% and 15% respectively on a MoM basis. However, M&M reported positive growth of around 10% in domestic PV sales during the same period. Clearly, we have concerns on the momentum in the PV sector in Q1FY22 since the second Covid wave continues to increase in intensity and presence across the country. Nevertheless, the sector may still post a positive volume growth YoY due to the favourable base factor along with the personal mobility factor and the new product launches."

Source : Equity Bulls

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