Shares of two and three-wheeler auto companies were in focus during the trading session on Thursday after the auto companies announced strong sales numbers for the month of April 2024 on Wednesday, May 1. All the auto companies report their monthly sales figures on the first day of the new month.
Companies like TVS Motors Company, Hero MotoCorp, Bajaj Auto and Eicher Motors gained up to 3 per cent for the day. However, some names like Wardwizard Innovations & Mobility Ltd cracked more than 4 per cent for the session.
Shares of TVS Motors gained 2.66 per cent to Rs 2,116.95, while Bajaj Auto rallied 2.58 per cent to Rs 9,138 on Tuesday. Hero MotorCorp was up 1.7 per cent to Rs 4,619.40, whereas Eicher Motors gained 0.75 per cent to Rs 4,629.15 during the session. On the contrary, Wardwizard Innovations and Mobility tumbled about 4.6 per cent to Rs 58.35 during the day.
Hero MotoCorp sold 533,585 units of motorcycles and scooters in April 2024, which translated into a robust 34.7 per cent YoY growth. Domestic sales grew about 33 per cent to 5,13,296 units, while exports zoomed 105 per cent to 20,289 units in April 2024.
The country’s largest two-wheeler maker Bajaj Auto recorded a 17 per cent growth in sales at 3,88,256 units in April 2024 compared to 3,31,278 units in the same month last year. Its domestic sales recorded a 17 per cent increase at 2,49,083 units while exports rose 18 per cent to 1,39,173 units during the month.
TVS Motor Company has reported total sales of 3.83 lakh units for April 2024, growing 25 per cent on a year-on-year (YoY) basis, with total 2-wheeler sales rising 27 per cent to 3.74 lakh units and electric vehicle sales increasing 179.5 per cent to 17,403 units during the same period. Exports grew by 12 per cent to 80,508 units.
Eicher Motors’ motorcycle division Royal Enfield reported a 12 per cent YoY rise in sales to 81,870 units during April 2024, with international business recording 60.6 per cent YoY growth at 6,832 units.
Commenting on the numbers, Akshay Karwa, Research Analyst, Anand Rathi Institutional Equities said that two-wheeler-volumes demonstrated robustness, with prominent OEMs reporting strong growth primarily driven by Hero In April 2024.
“The domestic two-wheeler industry is witnessing a transition towards premium offerings as consumers seek vehicles with enhanced features. Subsequently, there are indications of a recovery in the rural economy. We anticipate this positive trend to persist throughout FY25,” he said suggesting Hero MotoCorp as his top pick from the sector.
All two-wheeler OEMs have reported double-digit growth due to robust domestic demand owing to regional festivals and the wedding season. Double-digit volume growth despite healthy stock levels of 40-45 days and minimal discounts also underscore the strong domestic demand, said DK Mudaraddi, Research Analyst at Stoxbox.
“Eicher Motors also reported double-digit growth, slowly putting worries of market share loss due to competition from other OEMs to sleep. Exports were strong for all OEMs with some performing better than rest despite geopolitical tensions being high during the month,” he said.
Mudaraddi has picked Hero Moto as the top pick from the pack on the back of clear plans to win market share in the premium category; strong re-entry into EV space through investments in Aether and operational efficiency to come in VIDA; strong existing market share in the 125cc and below segment and would benefit the most from the expected rural/semi-urban growth.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
