Passenger vehicle sales are expected to be robust in August on account of large pending orders with various companies and production ramp up, according to a report.
Besides, two-wheeler volumes are also expected to improve, owing to festive demand and inventory build-up with dealers, according to brokerage firm Emkay Global Financial Services.
"Among OEMs, we estimate domestic volumes to grow by 75% year-on-year for Mahindra & Mahindra (M&M), 66% for Tata Motors and by 36% for Maruti Suzuki," the report said.
The volume tally for M&M and Maruti Suzuki would further pick up in September, with commencement of dispatches of new products (Scorpio-N for M&M and Grand Vitara for Maruti Suzuki), it added.
In the two-wheeler space, Emkay Global expects domestic volumes to improve by 59% YoY for Royal Enfield, 19% for TVS Motor, 17% for Bajaj Auto and 9% for Hero Moto Corp.
Besides, commercial vehicles should uphold the uptrend, with robust growth in the passenger and cargo segments, it noted.
However, tractor volumes are likely to decline due to subdued sentiment caused by an uneven spread of monsoons and lower Kharif sowing acreage, the brokerage firm stated.
"Geographical spread of monsoons continues to be a concern for states such as U.P., Bihar and Jharkhand. As of August 19, Kharif sowing is 2% below last year’s, with 8% lower rice sowing," it added.
