June wholesales: PV & CV in fast lane. EV adoption at an inflexion

Research evidence excerpt

June wholesales: PV & CV in fast lane. EV adoption at an inflexion

egment registered strong 28-29% y/y growth in June, albeit on benign base but

seems to be holding up well amid fuel inflation worries. All OEMs viz. AL, TMCV & VECV PV: Passenger Vehicle, EV: Electric

fared well in June. Looking at Q1, industry growth was between 10-15% y/y respectively Vehicle, 2W: Two-Wheeler, OEM:

for LCV & M&HCV respectively with Tata growing faster & gaining share on recent Original Equipment Manufacturer,

product refreshes. Tractors’ June wholesales too held steady at 14% Y/Y with M&M and MHCV: Medium & Heavy Commercial

Escorts up 12%/20%, respectively. This takes Q1 growth to 19% y/y. Given the deficient Vehicle, GST: Goods & Services Tax,

monsoons (El Nino impact), inflationary pressures and base effect, growth will start to LCV: Light Commercial Vehicle, SIAM:

moderate ahead. That said, tractor down cycle in 2H is already a base case on street and Society of Indian Automobile

priced-in. manufacturers, AL: Ashok Leyland, RE:

Royal Enfield, M&M: Mahindra &

2Ws see mixed prints; EVs at an inflexion? Mahindra, MSIL: Maruti Suzuki India

June wholesales for 2Ws have witnessed mixed trends while retails were strong at +21% Limited, TMCV: Tata Motors

Y/Y (Q1: 14% Y/Y). Within OEMs, Hero’s dispatches at 541k (-2% Y/Y, domestic -9% Y/Y) Commercial Vehicle, CNG: Compressed

lagged expectations a bit and even recent retail trends have been soft. This is probably Natural Gas, ESC: Escorts Kubota, MSP:

attributable to some demand moderation in entry segment. Royal Enfield (Eicher) Minimum Support Price, BEV: Battery

wholesales at 114k (+27% Y/Y) were in-line though weighed down due to supply side Electric Vehicle, SUV: Sports Utility

issues.