Nomura expects MHCV industry volumes to see year-on-year growth for the first time in more than two years led by improved demand as well as the low base effect.
The News International Team
Research firm Nomura expects strong volume growth across most industry segments (except LCVs) in August 2014, partly helped by the lower base effect. “Overall, there has been some improvement, particularly in 4-wheeler industry volumes (both PVs and CVs) over the last 2-3 months; we expect the improving trend to continue this month as well,” it said in its note today.
Nomura expects medium and heavy commercial vehicles (MHCV) industry volumes to see year-on-year growth for the first time in more than two years led by improved demand as well as the low base effect.
“As per our estimates, car industry volumes will likely see 5 percent YoY growth in August, led by strong performance by Maruti . We expect 17 percent YoY volume growth in 2-wheeler industry volumes – Honda and Hero Moto will largely lead strong industry growth.
We expect MHCV industry volumes to see 17% growth – freight rates have increased over the last few months which is positive for demand from fleet operators, in our view. In the tractors segment, we expect 6 percent volume growth for M&M in August largely due to lower base effect,” the research note said.
Below is Nomura’s estimates for August auto sales: