Meanwhile, MRF, Bajaj Auto, and Hero MotoCorp slipped over 2 per cent each, while Bosch declined over 1 per cent, and Mahindra and Mahindra (M&M) 0.68 per cent intraday

Maruti Suzuki’s domestic PV volumes declined 4 per cent led by a 12 per cent decline in the Compact segment and flat growth in the Mini segment.

Sports Utility Vehicle (SUV) volume growth for Maruti Suzuki also slowed more than 4 per cent in September 2024. The company has been facing a slowdown in the segment since July 2024 due to the high base and increasing competition in the SUV category.

Meanwhile, Tata Motors reported 9 per cent volume degrowth for the fourth consecutive month with electric vehicle (EV) sales declining 23 per cent Y-o-Y. The withdrawal of subsidy on fleet electric cars has dampened demand for Tata Motors EVs.

The company’s Medium and Heavy Commercial Vehicles (MHCV) volumes were down 28 per cent, while its Intermediate Light Commercial Vehicle (ILCV) segment declined 16 per cent Y-o-Y.

Furthermore, its small commercial vehicle (SCV) cargo and pickup segment was lower by 26 per cent. The bus segment too posted a decline of 7 per cent for the first time since April 2023.

Likewise, Ashok Leyland’s total volumes declined 10 per cent Y-o-Y with domestic volumes falling 12 per cent Y-o-Y. Domestic MHCV Truck/Bus volumes declined 17 per cent/3 per cent Y-o-Y. Domestic LCV volumes declined 6 per cent Y-o-Y.

Meanwhile, M&M’s total CV volume declined 1 per cent Y-o-Y. Light Commercial Vehicles (LCV) (more than 3.5 tonne) declined 11 per cent Y-o-Y.

As per Tata Motors, the weak trend in the medium and heavy commercial vehicle segment was due to a slowdown in infrastructure project execution with a reduction in mining activity amid heavy monsoons, which led to lower fleet utilisation.

According to analysts at SBI Securities, PV sales continued to remain in the slow lane in September, while the prominent CV players’ sales volume faced headwinds owing to less demand due to heavy rains.

The brokerage expects PV sales to pick up in the second half of the current financial year (H2FY25).

Emkay Global, on the other hand, sees MHCV demand picking up from Q3, led by intermediate and medium trucks and buses, followed by heavy CVs.

“We continue to prefer two-wheelers (2Ws) on a relative basis amid the broadening recovery and potential of a replacement-led ~2-3-year visibility; we also believe CVs and tractors would likely enter an upcycle from H2FY25. Our top OEM picks are Ashok Leyland, Tata Motors, and Hero MotoCorp; in ancillaries we prefer Shriram Pistons, Pricol, JK Tyre, CEAT, and Suprajit Engineering,” the brokerage added.

First Published: Oct 03 2024 | 3:14 PM IST