Two-Wheelers Post Strong Sales In April, Tractor Slowdown Continues & CVs Are Staging A Recovery

Bills have been a mixed bag in April. Sonia is here with the details on what’s performing and what’s not. Well, Sonia, go ahead. Well, thanks a lot for that. You know, as you really pointed out, it’s been a mixed bag this time around, but just wanted to put 3 trends on board. The first big trend really is that the two Wheeler sector has done very well this time, both in domestic and a pickup in the export market. So if you look at it across the board, whether it’s Bajaj Auto, TV’s, Hero or even Ayesha Motors, all two Wheeler companies have recorded very strong growth. The strongest of the lot has been Hero MotoCorp, largely because of a low base that it was working with and a recovery in the rural market. Bajaj Auto has come in with the 17% consistent growth over the last many months. TV’s motor has seen a good pickup as well. Royal Enfield Two was up almost about 12 odd percent. The second big trend we notice is that the tractor industry slowdown is something that continues. So both Eminem as well as Escorts reported weak numbers. If you look at Eminem, it still managed to do a 2% growth year on year, but Escorts actually saw a fall of .7% in their numbers in the month of April. Now Escort says that the demand for tractors was impacted because of a couple of reasons. One of it is the ongoing election season due to which demand was hit. The reservoir of water levels are on the lower side. So demand was, you know, has slumped because of that. A decrease in haulage activities and a moderate rugby output is something that has hit the tractor demand this time around. And the third big trend I’ve noticed is there’s finally a comeback in the commercial vehicle sector. So both Ashok Leyland, as well as Tata Motors saw a decent growth in the commercial vehicle. You know, wholesale sales, Ashok Leyland was up 10%. Tata Motors was up 31% in CVS. Ayesha Motors, however, continues to underperform in that space, so down almost about 18% odd percent. Was an outlier, but apart from that, the other two players did quite well. So these are the big trends that we noticed in the auto sales in the month of April. Right. Sonia, thanks a lot for that. So those are a bunch of auto stocks on our radar on account of the numbers that came by.