Nomura sees Dec volume growth for autos on weak base; flags demand slowdown

UNO Minda

29/12/2022 06:19

** Brokerage Nomura sees healthy demand in medium and heavy
commercial vehicles, but a slowdown in passenger vehicles and
two-wheeler demand
    ** Brokerage expects sale of 2,80,000-2,85,000 units of PVs
in December, 12% YoY growth on low base
    ** Two-wheelers volumes likely to rise 9% YoY on a weak
base, but down 13% from the peak sales volumes in December 2017.
MHCV volumes likely up 13% YoY - Nomura
    ** Brokerage prefers original equipment makers (OEMs) such
as Mahindra & Mahindra Ltd  MAHM.NS , TVS Motors Ltd  TVSM.NS ,
Ashok Leyland Ltd  ASOK.NS , besides Sona Comstar Ltd  SONB.NS ,
Uno Minda Ltd  UNOI.NS  and Sansera Engineering Ltd  SASE.NS  
    ** It says Maruti Suzuki's domestic PV wholesales could fall
7% YoY in Dec due to chip shortage and weak demand 
    ** Brokerage sees high-growth categories like passenger
vehicles to slow down in 2023, but expects recovery in
two-wheeler demand, aided by cooling inflation, rural growth and
higher government spending
    ** Up to last close, Nifty Auto Index .NIFTYAUTO up ~15.3%,
eyeing a third consecutive year of gains
 (Reporting by Varun Vyas in Bengaluru)
 ((varunvyas.hebbalalu@thomsonreuters.com;))