Has the holiday season brought strong wholesale sales? Analysts divided

Indian automakers are all set to release September sales data from Saturday. Nomura brokerage firm feels the start of the festive season could have generated strong wholesale sales for the automotive sector in India. But some experts think otherwise.

Before the sales figures, Nomura estimated that four-wheel companies would see their best sales. The passenger vehicle space saw a slew of new launches, such as Mahindra & Mahindra and Maruti Suzuki India, which should have boosted sales.

Sales of commercial vehicles would also see healthy growth, according to the company’s estimates, which could benefit Ashok Leyland and Tata Motors the most.

Although there has been a domestic demand for two-wheelers, according to the brokerage, the segment could see poor numbers on the export front. Bajaj Auto could report a decline of 5.7%, according to Nomura. This could be due to poor sales in rural markets.

Hero MotoCorp had posted a 1.92% increase in sales in August compared to the year-ago period, but had expected the growth momentum to pick up in the coming months due to a festive season. typical after a two-year hiatus, a stronger monsoon resulting from a fair agricultural harvest and positive consumer attitudes, as well as a robust rise in the country’s GDP.

Has the holiday season brought strong wholesale sales? Analysts divided

In an exclusive conversation with CNBC-TV18, Jay Kale, Senior Vice President of Research at Elara Capital, said overall volumes during Ganesh Chaturthi and Onam festivals in Maharashtra and Karnataka were 20% lower than volumes for the 2019 financial year.

“There hasn’t been a lot of improvement in September demand compared to what was happening from April to August,” Kale told CNBC-TV18.

Echoing the same sentiment, Samir Arora, founder and fund manager at Helios Capital, told CNBC-TV18 that in 2022, overall auto sales could be lower than in 2019 (pre-pandemic levels).

“Auto sales have been weak due to lack of semiconductors or confusion among electric car buyers. win, but otherwise it’s just normal numbers,” Arora said.


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