November Auto Wholesales - All Segments Down, As Expected; M&HCV Numbers Are Slightly Weak: ICICI Securities

ICICI Securities Reports

With part of festive season falling in November this year versus fully in October 2022, both private vehicle and two wheeler players have reported strong double-digit year on year domestic growth, although declined month on month, as expected.

However, in medium and heavy commercial vehicles, volume dipped month-on-month by ~20% despite November being a seasonally strong month.

Tractor wholesales grew ~5-6% YoY driven by the ongoing harvest season. In domestic two wheeler, barring Royal Enfield (down 5% month-on-month), volume of the rest was down ~15% or more to normalise inventory.

Maruti Suzuki India Ltd. wholesales were down 17% month-on-month at 164000 units due to production holidays on account of Diwali and inventory management.

We expect destocking-led lower wholesales to persist and impact absolute volume and growth for both passenger vehicles and two-wheelers until January 2024.

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