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Auto Sector Check – Growth Continues On Inventory Built Up Ahead Of Festival: Reliance Securities


BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Reliance Securities Report

Indian automobile companies witnessed gradual improvement in sales performance on YoY across segments (two-wheelers and three-wheelers improved sequentially). Ease on semiconductor supply supported passenger vehicle segment, while pick up in construction activities with new infra projects aided commercial vehicle sales. Uneven monsoon impacted rural economy and two-wheeler sales.

Low base and opening of school, colleges fuelled three-wheeler sales. Urban has already recovered to greater extent, while improving rural recovery is halted due to erratic monsoon, particularly in Northern region.

We expect the industry volume to improve gradually every month over the next two months of festival season, while it would plummet November onwards.

We expect retail demand to remain strong in FY23, though ongoing global geopolitical issues continue to keep pressure on economies and elevating inflation level across countries. This has been limiting industry wide recovery at the moment.

However, softening commodity prices and stable fuel prices would support industry ahead.

Click on the attachment to read the full report:

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This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.





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