The overall auto wholesales have registered an increase in volumes in January 2024 on a monthly basis. The recovery appears to have been significantly high in the passenger vehicles (PV) segment due to a low base, strong growth in SUV volumes, and a revival in the entry-level segment for Maruti. Post the festive season, the OEMs had focused on cutting down dealer inventory in November and December, and hence there was adequate room to replenish dealer stock from January 2024 onwards. Two-wheeler OEMs showed robust growth owing to the premiumization trend and an uptick in rural sales driven by the wedding season. On the other hand, the CV wholesales have declined across OEMs primarily due to the underperformance of the MHCV segment. The Red Sea issue impacted the export performance across all OEMs, except for Maruti Suzuki. The shipments to Europe have been impacted more than the shipments to the Americas. Further, several OEMs have announced price hikes effective from January-February 2024, citing an increase in input costs which we believe would be absorbed as demand in the higher-end segment is relatively better and entry-level products are supported by promotional schemes.
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