New Delhi [India], November 5 : The country's automobile industry reflects a varied performance across different segments in October sales with impressive growth in two wheelers, modest gain passenger vehicle and subdued performance in commercial segment.
As per a report by Axis securities, in the domestic market, two-wheelers showed impressive growth with an 11 per cent increase in volume year-over-year (YoY) and a 6 per cent rise month-over-month (MoM). Export performance was similarly positive, up 23 per cent YoY and 2 per cent MoM.
It said "The domestic 2W industry witnessed strong volume growth of approx. 11 pc YoY and 6 pc MoM, while total exports were up by 23 pc YoY and 2pc MoM, respectively".
The report also highlighted that the total two-wheeler dispatches saw an approximate 13 per cent YoY boost, with growth supported by factors like pent-up rural demand, the launch of new models, and the festive season, which traditionally drives consumer spending.
For passenger vehicles (PV), the report noted that the domestic sales saw modest growth, increasing by 1-3 per cent YoY and 10-12 per cent MoM.
The report also suggested that although growth was positive, it remains limited compared to other segments, which might be due to factors such as existing high base levels and changing demand patterns.
In the Commercial vehicles (CVs), the report noted that it showed a more subdued performance, with overall sales remaining largely flat on a YoY basis but experiencing a 9 per cent MoM increase.
The CV segment was affected by lower volumes in medium and heavy commercial vehicle (MHCV) trucks, which was partially balanced by higher bus sales. Domestic dispatches for CVs grew only by 1 pc YoY, though they saw a 9 per cent MoM increase, reflecting some monthly recovery.
The report also anticipates low single-digit growth for CVs in FY25, primarily due to factors like high base effects from the previous year, lower fleet capacity utilization, and a moderate replacement demand, particularly within the MHCV truck segment.
It said "For CVs, we anticipate low single-digit growth in FY25E across OEMs due to the high base effect"
The report noted that Tractors, in contrast, exhibited significant growth with a 29 per cent YoY increase in domestic volumes in October 2024. This uptick signals a stronger demand in the agricultural and rural economy, possibly aided by seasonal factors like post-monsoon agricultural activity.
As per data by report, India's automotive industry is showing robust growth in the two-wheeler and tractor segments, while the PV segment sees moderate gains. However, the CV market remains relatively flat, with a cautious outlook for the near future.
The performance in each segment reflects diverse factors, from rural demand and new product launches in 2Ws to base effects and operational challenges in CVs. As the industry adapts, these trends suggest selective growth, with a tilt toward two-wheelers as the most promising category.