According to Nomura’s dealer checks, customer enquiries and footfalls have increased post price cuts around the third week of February, which may lead to some volume surprise
The recent price cuts in the auto industry to pass on benefits of lower excise duties across segments may lead to some volume surprise as there is a significant increase in customer enquiries, says Nomura.
In a research report, Nomura says, this (the price cuts) may lead to higher dispatches from original equipment manufacturer (OEMs) and could lead to some positive surprise to its estimates.
Nomura estimates car industry volumes to remain flattish in February due to the weak base as February 2013 volumes declined by 25% from previous year. "We think weakness in the commercial vehicle industry will persist; we estimate about 20% fall in medium and heavy commercial vehicle (MHCV) volumes and around 25% decline in light commercial vehicle (LCV) segment volumes. According to our calculations, two-wheeler industry volumes are likely to see about 15% growth, largely led by the strong performance by Honda Motorcycles (HMSI) and partly due to the weak base (volumes were down 3% in February 2013). We expect growth momentum in the tractor segment to sustain and estimate around 8% volume growth for Mahindra & Mahindra (M&M) in February 2014," it said.
Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam
Fiercely independent and pro-consumer information on personal finance.
1-year online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
30-day online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
Complete access to Moneylife archives since inception ( till the date of your subscription )
