Automobiles Sector - Demand intact for PVs, muted for 2Ws/CVs By Motilal Oswal
Demand intact for PVs, muted for 2Ws/CVs
Customers holding back for higher discounts on BS4
Our interaction with leading industry channel partners indicates positive demand trends in PVs, but continued weakness in 2Ws, CVs and tractors. Compared to Jan'19, wholesales are expected to be lower in Jan'20 for all OEMs due to the transitory issues for BS6 vehicles and the weak demand environment. For 2Ws/CVs, inquiries and conversions have been weak, whereas in PVs (particularly for MSIL), the conversion of inquiries has been subdued due to supply side issues (BS6 related) for select models.