Summary:

According to Nuvama, the two-wheeler (2W) sector is projected to grow by 8% year on year between January and July 2024, driven by strong rural demand and sustained urban sales. Favorable monsoon conditions have boosted rural sentiment and sales. Due to holiday inventory buildup, wholesale volumes are expected to surpass retail sales. The tractor sector is anticipated to rise by approximately 4% year on year, supported by improving farmer sentiment and favorable trade conditions.

The Passenger Vehicle (PV) segment is predicted to decline by 3% YoY due to last year's high base effect. The Commercial Vehicle (CV) industry may contract by 4% annually, influenced by a high base effect for freight vehicles. Despite positive indicators such as increased e-way bill generation, volumes for August 2024 will show mixed results. In 2023-24, India’s automobile exports totaled 4.5 million vehicles, with two-wheelers making up 76.8%. The government aims to quadruple the size of its auto industry to $178.70 billion by 2024. 

Source: IBEF 

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