UBS has analyzed the December retail trends for the auto sector, projecting a 7-9% year-on-year decline in overall industry retails based on mid-month Vahan data. The decline is led by market leaders Hero MotoCorp and Bajaj Auto, both of which are expected to register a 15% retail drop.
On the other hand, TVS Motor and Eicher Motors (Royal Enfield) are on track to post positive growth, driven by market share gains and a shift in consumer preference toward premium offerings. Similarly, Honda Motorcycles and Scooters India (Honda) has seen significant year-on-year and month-on-month market share gains, while Hero MotoCorp continues to face losses.
The report also highlights the increasing traction of electric vehicles (EVs), which continue to erode volumes for traditional market leaders. UBS points to a customer shift from commuter motorcycles to scooters, premium bikes, and EVs, signaling a notable change in market dynamics.
The December trends reflect evolving consumer preferences and the challenges faced by traditional players amid rising competition from EVs and premium segments.
Disclaimer: The above is for informational purposes only. Please consult a financial advisor before making any investment decisions.