India buys 19% fewer vehicles in Dec as two-wheeler sales fall sharply, UBS says EVs in focus – CNBC TV18
Vahan data shows there has been a major fall in the two-wheeler category with registrations down 24%. While passenger vehicles or cars are also expected to post a drop in sales, they could relatively outperform.
In terms of fuel preference for new vehicles, Vahan data trend shows that registration of petrol-power vehicles has fallen by 25% whereas electric and CNG categories have outperformed others.
Also Read: Bajaj Auto’s Chetak is the No. 1 player in EV two-wheelers market
In its outlook shared earlier this month, Federation of Automobile Dealers Associations of India (FADA) had said that December’s prospects are mixed, with around 40.54% of dealers anticipating flat sales, 39.19% expecting growth, and 20.27% foreseeing de-growth.
“On balance, the mood is cautiously optimistic. While no single factor suggests a strong rebound, stable rural demand, possible year-end offers, and a benign inflation outlook could collectively lend mild support across segments,” the dealer’s association had said in a statement on December 9.
Looking at mid-month Vahan Data, UBS now expects the industry to post a 7-9% YoY decline in retails for the month. The brokerage Hero Motocorp and Bajaj Auto will lead the decline with a 15% fall in retail sales.
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TVS and Honda, on the other hand, have gained big in terms of market share both year-on-year and month-on-month while Hero has lost the most.
TVS Motor and Eicher Motors are on track to post growth, the brokerage noted, adding that electric vehicles continue to gain traction even as market leaders see significant volume erosion.
