Wholesales: PVs see growth of 18% in February, two-wheelers 10%

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March 11, 2021 8:03 AM

Analysts tracking the sector said the February wholesale auto data was in line with expectations. Nomura said industry wholesale growth for February was largely in line with its estimates across all segments.

ICICI Securities noted that wholesales push continues despite modest retail trends.

The wholesale despatches of passenger vehicles (PVs) from automakers’ factory gates increased by 17.92% in February year-on-year (y-o-y), while two-wheelers (2W) notched up growth of 10.20%, riding on the low base effect and refilling of the inventory. However, three-wheeler (3W) sales remained in the negative zone, marking a decline of 33.82%, the monthly automobile sales data for February by the Society of Indian Automobile Manufacturers (Siam) showed.

The total production of PVs, 3Ws, 2Ws and quadricycles recorded a growth of 15.36% y-o-y.

While there was double-digit growth in PV and 2W despatches y-o-y, the April-February 2021 data showed all the segments in the negative zone. The PV sales in April-February 2021were down by 10.35% against the April-February 2020 sales. Likewise, 2W sales were down by 17.69% and 3W sales were down by 69.77%.

Rajesh Menon, director-general, Siam, said: “In February 2021, around 2.81 lakh PVs were sold, clocking a CAGR growth of just 3.29% over the previous highest sales in February 2018 of 2.55 lakh, while in February 2020 the total sales were 2.39 lakh. For 2Ws, 14.27 lakh units were sold in February 2021, which results in a de-growth of 5.41% CAGR from the previous highest sales in February 2018 of 16.86 lakh. However, the total PV sales in April-February period were still below the 2015-16 levels and for 2Ws, it was below the 2014-15 levels.”

Analysts tracking the sector said the February wholesale auto data was in line with expectations. Nomura said industry wholesale growth for February was largely in line with its estimates across all segments.

Naveen Soni, senior V-P, Toyota Kirloskar Motor, said, “We started the year on a positive note and the trend continues as we close the second month, clocking a growth of 36%. The wholesales have been very encouraging and we are witnessing a high influx of custommer orders month on month, thereby both significantly contributing to the growth story. Sales in February have been better than sales in January, thus helping us register a 27% growth in wholesales.”

ICICI Securities noted that wholesales push continues despite modest retail trends.

Tarun Garg, director, sales, marketing & service, Hyundai Motor India, said: “Both domestic and export demand have recorded healthy double-digit growth in February 2021, reflecting an all-round improvement in buyer sentiment.”

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