New Delhi, July 28 (Mayank Nigam) There will be a positive growth in sales for the commercial vehicles while passenger vehicle volumes would be higher, Emkay Global Financial said on Thursday.Two wheeler sales are likely to be better due to the ramp-up in production and upcoming festive season, it said.However, tractor volumes are likely to decline due to a high base and uneven spread of the monsoons. The brokerage firm has retained a positive view on the auto sector. Among OEMs pack, they are positive on M&M, Tata Motors, Maruti Suzuki, Ashok Leyland and Escorts.”Commercial vehicles should remain in an uptrend, with robust growth in passenger and cargo segments. E-way bill trends indicate better freight availability compared with last year.
Emkay expects a positive growth at 58% YoY for Ashok Leyland, 55% for Eicher Motor-Volve Eicher Commercial Vehicle, 42% for Tata Motors and 13% for M&M in the domestic market,” the firm added.Passenger Vehicles should witness a robust growth on a large order book and production ramp-up, it said, adding among OEMs, the brokerage house estimates domestic volumes will grow by 49% YoY for Tata Motors, M&M by 28% and Maruti Suzuki by 8%.Vehicle discounts have increased MoM but remain significantly lower than the elevated levels seen in the past, it said.”Two-Wheelers volumes are expected to improve due to higher production and inventory build-up with dealers. Emkay expects domestic volumes to improve by 35% for Eicher Motor-Royal Enfield, 6% for TVS Motor Ltd, 6% for Hero Moto Corp Ltd and 2% for Bajaj Auto. Tractor volumes are likely to decline due to a high base and uneven spread of the monsoons. Emkay expects a decline in domestic volumes – 13% for M&M and 16% for Escorts,” it said.