Jefferies sees strong growth in Indian auto sales for June

Investing.com -- Jefferies reported that the Indian auto industry posted strong volume growth across multiple segments in June, with wholesales rising 38% year-over-year for trucks, 23% for passenger vehicles, and 14% for tractors.

Passenger vehicle industry wholesales grew approximately 23% year-over-year in June, according to Jefferies estimates based on original equipment manufacturer data. Growth varied widely among manufacturers, with Tata Motors Passenger Vehicles up 67% year-over-year, Maruti Suzuki and Mahindra & Mahindra rising 24-28%, while Hyundai declined 10%.

Hyundai lost production of 14,000 units in June due to a fire at a supplier facility. The company's production returned to normal levels on June 22, and it plans to recover the lost production in the second quarter of fiscal year 2027.

Registration growth accelerated to 20-38% year-over-year across segments, with electric vehicles gaining market share in both two-wheelers and passenger vehicles. The share of electric vehicles in passenger vehicles increased approximately 1.1 percentage points month-over-month to 7.7% in June.

In the two-wheeler segment, Eicher Motors reported 27% year-over-year growth in wholesales, while Hero MotoCorp's wholesale volumes fell 2% year-over-year. Honda posted 23% year-over-year growth in June.

Electric vehicle share in two-wheelers rose 1.3 percentage points month-over-month to 10.6% in June, crossing the 10% threshold for the first time. TVS Motor leads the electric two-wheeler market with 24% share in June, followed by Bajaj Auto at 22% and Ather Energy at 16%.

Tractor industry wholesales grew approximately 14% year-over-year in June, while registrations rose 30% year-over-year. Truck industry wholesales increased 38% year-over-year in June.

Jefferies maintains buy ratings on Eicher Motors, TVS Motor, Mahindra & Mahindra, and Maruti Suzuki.

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