HSBC has provided insights into the Indian auto sector, showcasing mixed performance across various segments during the recent period.
- Passenger Vehicles (PV): Retail sales declined due to a shift in the festive season. However, the segment continues to maintain a stable outlook, with inventories expected to adjust in the coming months.
- Two-Wheelers: Retails witnessed strong momentum, registering a 16% year-on-year growth, driven by improving rural sentiment and demand recovery in urban areas.
- Commercial Vehicles (CV): The segment demonstrated pricing discipline despite weaker demand conditions, reflecting a cautious but stable market environment.
- Tractors: Inventory levels normalized as higher retails were recorded, supported by positive farmer sentiment, good reservoir levels, and Rabi crop sowing progress.
- Electric Vehicles (EV): Market dynamics in the EV two-wheeler space showed significant activity. Ola’s market share decreased to 25%, while Bajaj and TVS captured 22% and 23%, respectively, showcasing intensified competition in the segment.
The auto sector continues to reflect resilience and adaptability, with key sub-segments performing differently based on underlying demand trends and macroeconomic conditions. Investors and industry stakeholders will closely track developments, particularly in the EV and rural-focused segments.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a financial advisor before making any investment decisions.