July Auto Sales Preview: Two-Wheelers Expected To Show Sustained Sales Growth
In the passenger vehicle space, M&M is expected to have done better than rivals Maruti Suzuki and Tata Motors.
Two-wheeler makers are estimated to have sustained their sales growth in July, even as auto sales data is expected to release on Thursday.
Several brokerages expect Bajaj Auto Ltd. and TVS Motor Co. to be among key beneficiaries of the sales growth, while pockets of outperformance in four-wheelers will be led by Mahindra & Mahindra Ltd.
VE Commercial Vehicles Ltd.—a joint venture between the Volvo Group and Eicher Motors Ltd.—is also expected to surprise positively.
Double-Digit Growth Expected In Two-Wheelers
Two-wheeler makers may report low double-digit growth, led by Bajaj Auto and TVS Motor, as both are expected to report 8–10% growth as compared to last year.
After its quarterly results in June, Bajaj Auto said that the newly launched Pulsar 400 would reach dealers in July. Apart from that, it had also launched the new variant of the Chetak EV, priced under Rs 1 lakh.
TVS Motor continues its growth trajectory, seeing recovery both in year-on-year and month-on-month numbers. The 125-cc space has been positive for the company, with mass acceptance of the Raider 125.
Hero MotoCorp Ltd., while reporting mid-single-digit growth as compared to last year, is expecting to slow down from the blistering sales in June, which saw the rural recovery trend play out. Launches in the premium space, with the Maverick, Karizma and Harley-Davidson 440X, are yet to add to the numbers meaningfully.
FY25 has been a disappointing start for Eicher Motors and this month, too, is not going to be any different. Volume has largely been disappointing for Royal Enfield. They did launch the Guerrilla 450, but its impact will only be seen over the next few months.
Passenger Vehicles: Volume Likely To Be Positive
M&M is expected to carry the baton for passenger vehicle makers this month as well. The 3XO was a strong launch back in May and along with other products, it is expected to lead growth. The company reported its first quarter earnings on July 31 and mentioned that the 3XO has 20,000 bookings.
Both Maruti Suzuki India Ltd. and Tata Motors Ltd. are expected to report flat-to-negative sales growth this month.
Maruti Suzuki's launch of the new Swift back in May is expected to sustain the growth trajectory this month, while an update on the 'Dream' Series is awaited.
While Tata Motors has not seen new offerings yet, that is set to change with the Curvv EV's launch on Aug. 7.
Commercial Vehicles: VECV To Surprise Positively
VECV, the commercial vehicle arm of Eicher Motors, is expected to grow the fastest among commercial vehicle makers. The 3.5–18-ttonne space has been growing for VECV.
Ashok Leyland Ltd. and Tata Motors are also expected to grow, albeit at a slower pace.
For Ashok Leyland, the bus segment has grown well and is expected to grow further. In the last quarter, bus sales grew 49% for the company. Ashok Leyland also launched its second electric light commercial vehicle this month.
Tata Motors witnessed a flat sales trend in FY25. The LCV segment, which includes the electric LCV, has been doing much better for Tata Motors.
Tractors: Escorts Continues Subdued Trend
Escorts Kubota Ltd. is expected to show a fall in growth in sales, continuing its lacklustre FY25 trend.
Mahindra & Mahindra is expected to show single-digit growth, bucking the industry trend. Regions like Maharashtra and Karnataka have been strong for the company, according to brokerages, which expect it to benefit from the rainfall in these regions.
