Two-wheeler industry to grow by 8%, tractors by 4% annually: Nuvama

PV and CV growth: The two-wheeler (2W) industry is anticipated to grow in high single digits. There is an estimated 8 percent year-on-year (YoY) increase for the two-wheeler segment. The tractor industry is anticipated to see marginal growth of approximately 4 percent YoY in the domestic market. This has been reported by Nuvama, a wealth and investment firm.

The two-wheeler market is growing primarily due to strong rural demand and maintained urban sales. The beneficial monsoon has enhanced rural emotions, resulting in an increase in sales. Furthermore, wholesale volumes are projected to surpass retail sales as dealers stockpile inventory ahead of the forthcoming holiday season. Farmers' sentiments have improved as a result of regular monsoon conditions, adding to the tractor industry's positive outlook. Furthermore, promising terms of trade, with output inflation exceeding input inflation, have boosted the sector.

In the domestic market, the passenger vehicle segment is expected to have a small fall in sales of about 3 per cent on a year-on-year basis. This restrained performance in the passenger vehicle segment is due to the early start of the holiday season last year, which created a large base effect. According to the report, the commercial vehicle (CV) industry is predicted to experience a minor reduction of approximately 4 per cent in yearly growth in the domestic market. This reduction is mostly the result of a high base effect for cargo vehicles, despite encouraging indicators such as increasing e-way bill generation and improved freight availability for carriers.

Overall, the research predicts that August 24 volumes will be a mixed bag for the automotive industry, with growth in the 2W and tractor segments, while the passenger vehicle and commercial vehicle segments will struggle. Among two-wheeler OEMs, the survey has predicted that mass-market players will perform well. In India's automobile market, two-wheelers and passenger automobiles account for 75.3 per cent and 17.6 per cent, respectively. Small and mid-sized cars account for the majority of passenger car sales, however, SUV sales have surged in recent years.

In the export market, India's automobile exports in 2023-24 were 45,00,492 vehicles, with two-wheelers accounting for 76.8 per cent of total exports.

During the same period, passenger vehicle exports rose from 6,62,891 to 6,72,105 units, representing a 13.8 per cent rise. India wants to treble its car sector size to Rs 15 lakh crore by the end of 2024.

(with PTI inputs)