These are the insights provided by JP Morgan, a prominent brokerage firm:
The demand outlook for Passenger Vehicles and 2-Wheelers is currently positive.
Festive season trends have been strong, except for entry-level 2-Wheelers and Passenger Vehicles.
Inventory levels are comfortable for 2-Wheelers but have increased for Passenger Vehicles, particularly in the entry-level segment.
The focus on electrification continues to be a significant priority, with TVS and Bajaj Auto planning to expand their offerings in both 2-Wheelers and 3-Wheelers.
We anticipate that the inflection point for Electric Vehicles in the Passenger Vehicles sector could occur in 2025.
Premiumization in the 2-Wheeler market is gaining momentum, with TVS-Norton indicating plans for a medium-term product launch.
The recovery of exports in the 2-Wheeler and 3-Wheeler sectors is expected to be gradual, with full ramp-up anticipated by 2025.
On Tuesday, the BSE Auto index experienced a 1.2% decline, closing at 36,184.13 points, which is 444.69 points lower than the previous Friday’s close on September 29th.