November Auto Sales, Bajaj Auto, TVS Motor, Hero Moto: Among all auto companies, two-wheeler manufacturers reported a steep decline in domestic volumes month-on-month due to channel inventory correction and weak rural demand, domestic brokerage firm Kotak Institutional Equities said in its report on auto sales figures.

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According to Rishi Vora, Research Analyst, Kotak Institutional Equities estimates that the domestic two-wheeler industry’s volumes declined more than 15 per cent month-on-month (MoM), adding that the export of two-wheeler segment remained under pressure in November 2022.

Deep Shah, Lead Analyst, YES Securities noted that two-wheelers have still not seen broad-based recovery with demand from urban/semi-urban continues to outpace rural demand. Among regions, the analyst expects the growth momentum relatively better from the Western region followed by the South, North, and East.

"Our channel checks suggest inventory built up in anticipation of the good festive season has largely been liquidated for two-wheelers and passenger vehicles," Jinesh Gandhi, Research Analyst, Motilal Oswal said in his report, adding that the two-wheelers demand environment needs to be monitored.

Two-wheeler major TVS Motors reported a 23 per cent MoM volume decline, led by a 38 per cent MoM decline in the scooter segment’s volumes, and a 22 per cent MoM decline in the moped segment’s volumes. Export volumes for TVS Motors decreased 12 per cent YoY in November 2022.

Royal Enfield reported a volume decline of 14 per cent MoM, led by a 14 per cent MoM decline in domestic volumes, and 12 per cent MoM decline in export volumes. Hero MotoCorp’s total volumes fell 14 per cent, MoM, in November 2022.

While Bajaj Auto reported a 22 per cent MoM decline in volumes, led by a 40 per cent YoY fall in domestic volumes due to channel inventory correction, and 17 per cent YoY decrease in the three-wheeler segment’s volumes.

Shares of two-wheeler manufacturers declined on Friday as Bajaj Auto shares fell by over 1 per cent to Rs 3662.15 per share, Hero Moto shares declined by over 1.5 per cent to Rs 2825 per share and TVS Motor Company traded flat with negative bias at Rs 1048 per share on the BSE intraday.