Sale Of Passenger Vehicles Rise In July

Vehicle sales for passengers are expected to be strong in July due to a huge production ramp-up and order book as well as commercial vehicle sales could remain on the rise according to a report recently. Contrarily, tractor production is likely to drop because of a strong base and uneven distribution of the monsoon season, according to the brokerage company Emkay Global Financial Services,who has maintained an optimistic outlook of the auto industry.

Emkay Global also expects a growth in the sales of two-wheelers due to increased production and the build-up of inventory by dealers. The passenger vehicle segment is expected to see an impressive growth rate due to an order book that is large and production ramp-up. automakers like Tata Motors, M&M and Maruti Suzuki expected to log 49 percent in, 28 percent and 8 percent in volume, respectively, in July the brokerage firm stated. In the two-wheeler market, Emkay Global estimates that there will be a 35% increase in sales to the domestic market for Eicher Motor-Royal and Enfield, as well as 6 percent each in the case of TVS Motor and Hero MotoCorp. Bajaj Auto is likely to have a 2 percent growth in domestic two-wheeler numbers in the month, Emkay Global said. In the month prior the domestic passenger vehicle sales increased by 19.06 percent over the previous year to 275,788 units.

The sales of two-wheelers during this time increased by 23.4 percent to 13 08,764 units in the same month in 2013 in comparison to three-wheeler sales, which increased 184 % year-on year to 26,701 units, according to SIAM (Society of Indian Automobile Manufacturing) June figures. Commercial vehicles will remain in an upward trend, with significant growth in both the cargo and passenger segments.

E-way bill trends suggest better access to freight compared to the previous season, Emkay Global said. Emkay Global, a brokerage firm, said it expects a positive growth of 58 percent increase in sales to the domestic market in the case of Ashok Leyland, 55 per percent for Eicher Motor Volve Eicher Commercial Vehicle, 41 percent of Tata Motors, and 13 percent for M&M on the domestic market. Tractor sales are likely to fall due to a large base and uneven distribution of monsoons, the company said, adding that it anticipates a 13 percent percent decline in volumes in India to M&M and 16 percent for Escorts.