Mumbai’s Auto Sector Booms in July 2024
The automotive sector in Mumbai is set for a strong performance in July 2024, according to a recent report by Anand Rathi. The report highlights a double-digit year-on-year (y/y) growth in two-wheeler (2W) wholesale volumes, driven by solid retail demand, estimated at approximately 15 per cent y/y, strategic inventory build-up, and a favourable base effect. Excluding Honda, the growth remains robust at around 14 per cent.
Passenger vehicle (PV) volumes are also expected to rise, supported by improved retail activity and inventory accumulation. The report predicts a slight growth of around 3 per cent y/y for PV volumes.
On the commercial vehicles (CV) front, the outlook is more mixed. Overall CV volumes are expected to remain relatively flat, with a small drop of approximately 3 per cent y/y, primarily due to lower light commercial vehicle (LCV) volumes. However, volumes for VECV’s CVs are expected to have risen by 15 per cent, and the medium and heavy commercial vehicle (M&H CV) growth forecast has been revised upwards to high single digits from mid-single digits, driven by robust demand for buses and ongoing replacement demand.
The M&H CV segment is further bolstered by increased infrastructure and economic activity, as well as a favourable comparison base from Q1 and Q4 of FY24.
Doubts Revealed
Auto Sector -: The auto sector refers to the industry that makes and sells vehicles like cars, bikes, and trucks.
Two-Wheelers -: Two-wheelers are vehicles like motorcycles and scooters that have two wheels.
Passenger Vehicles -: Passenger vehicles are cars and other vehicles that people use to travel from one place to another.
Wholesale Volumes -: Wholesale volumes mean the number of vehicles sold in large quantities to dealers before they are sold to customers.
Retail Demand -: Retail demand is the number of people who want to buy vehicles from stores or dealerships.
Inventory Build-up -: Inventory build-up means keeping extra vehicles in stock to meet future demand.
Commercial Vehicle -: Commercial vehicles are trucks and vans used for transporting goods or people for business purposes.
Tractor Sales -: Tractor sales refer to the number of tractors sold, which are used mainly in farming.
Medium and Heavy Commercial Vehicle -: These are larger trucks and buses used for transporting heavy goods or many passengers.
Infrastructure Projects -: Infrastructure projects are big construction works like building roads, bridges, and buildings.