Bajaj Auto and TVS Motor Set to Lead Two-Wheeler Sales Boom in August 2024

Bajaj Auto, TVS Motor Company, Eicher Motors, Hero MotoCorp, and other automakers are seeing strong growth in two-wheeler sales since the second half of FY24. Analysts expect good sales numbers for these companies in August, as the demand for two-wheelers remains high.

According to estimates from Jefferies India Pvt Ltd, Bajaj Auto and TVS Motor Company are expected to lead in two-wheeler sales for August 2024. Bajaj Auto is projected to see a 9% increase in two-wheeler sales compared to last year and a 4% increase compared to the previous month. Similarly, TVS Motor Company is also expected to report a 9% increase year-on-year and a 6% rise month-on-month.

Eicher Motors, which faced some challenges recently, is expected to see a 4% increase in Royal Enfield sales compared to July. Hero MotoCorp may see a strong rebound with a 10% increase in sales over the same period.

Other companies like Mahindra & Mahindra are expected to see a 6% month-on-month increase in overall vehicle sales and a 1% increase in tractor sales. The outlook for tractor sales has improved, and analysts from Nuvama Institutional Equities believe that Mahindra & Mahindra and Escorts could see mid-single-digit growth in FY25.

For passenger vehicles, Maruti Suzuki India Ltd is expected to see a 3% month-on-month growth in sales, although there may be a 6% decline compared to last year. Tata Motors may also see a slight decline in passenger vehicle sales, with a 4% drop year-on-year and a 2% decrease compared to the previous month.

However, Tata Motors is expected to see a 10% increase in domestic commercial vehicle sales month-on-month, and Ashok Leyland could also see an 8% rise in commercial vehicle sales, according to Jefferies estimates.

Jefferies India remains optimistic about the Indian auto sector and has named TVS Motor Company and Mahindra & Mahindra as its top picks.