Auto majors are likely to see a boost in their sales this ongoing festive season, a Motilal Oswal report said.
The festive season has helped raise demand further for commercial vehicles (CV). Last year, demand during the season outstripped supply during the season.
The report points that this trend is likely to continue, which can keep the commercial vehicle wholesales healthy.
Analysing sales in auto major Ashok Leyland, the report expects the firm's CV wholesales to grow by 12% to 20,900 units on a year-on-year basis. Tata Motors and VE Commercial Vehicles are also expected to grow by 18.1% and 13.1% respectively.
For passenger vehicles (PVs), Maruti Suzuki India continues to take the lead. The firm has already seen bookings for over 95,000 units of the new model of its hatchback Swift since launch.
The financial services firm report expects Maruti's overall dispatches to grow by 14.8% on a year-on-year basis to 1,60,500 units.
Along with the growth in the CV segment, Tata Motors takes the second position, in the PV segment.
Tata Motors is expected to grow 28.3% with their newly launched SUV, Nexon, taking the lead, the report points said. The firm, which owns the iconic Jaguar and Land Rover brands, launched quite a few cars in 2017 such as Tiago, its electric vehicle Tigor, and Hexa~.
Third in line is Mahindra & Mahindra. The financial services firm expects M&M's passenger vehicles volumes to rise by 7.6% year-on-year to 81,100 units.
Along with the growth in the PV segment, the government's push in rebuilding the agriculture sector is also seen as a positive sign for the increase in tractor sales for the auto firm. The report expects M&M to help recover the rural economy.
"The agriculture output has been good, the MSP prices have been good, the government focus on agricultural and rural development is absolutely very high and very first indication of monsoon also is positive, goods and services tax (GST) is all settled in. So I don’t see any reason why we should have a negative growth during this year," Pawan Goenka, Managing Director of M&M, said in an interview.
Maruti and Motherson Sumi would lead in the large cap space while Ashok Leyland and Exide Industries would lead the midcap space, the report said.