Auto Sector
JPMORGAN ON TWO-WHEELERS : 21.02.2022
• Legacy two-wheeler OEMs could dominate the EV headlines of 2022
• Recent results showcased the strength of the ICE legacy business
• Believe two-wheeler demand is bottoming
• Bajaj Auto: Maintain Outperform; Hike target price to Rs 4000 from Rs 3875
• Hero Moto: Maintain Outperform; Hike target price to Rs 3100 from Rs 3025
• TVS Motor: Maintain Outperform; Hike target price to Rs 770 from Rs 745
JEFFERIES ON AUTOS : 05.01.2022
* Auto Sector Is Set For A Rebound In 2022 As Demand Continues To Improve
* Expect 14-30% Volume Growth In Trucks, Passenger Vehicles & 2Ws In FY23
* See Margins Recovering From A Cyclical Trough
* Demand Should Shift Towards SUVs In Passenger Vehicles
* Demand Should Shift Towards EVs/Scooters/Premium-Bikes In 2 wheelers
* Top Pick Is Tata Motors, Followed By Maruti, TVS Motor & Eicher Motors
* Underperform Rating On M&M & Motherson Sumi
Jefferies on Autos : 05.01.2022
* Sector set for a rebound in 2022 as demand continues to improve from worst slowdown in decades, chip constraints ease, & commodity cost pressures peak out
* Expect 14–30% vol growth in trucks, PVs & 2Ws in FY23, & see margins recovering from a cyclical trough
CLSA ON AUTOS : 04.01.2022
* CLSA on autos: Weak demand trends persist, Auto registrations were weak in 2-wheeler, passenger vehicle & tractor segments
* Weak Demand Trends Persist
* Auto Registrations Were Weak In 2-wheeler, Passenger Vehicle & Tractor Segments
* Registrations Increased YoY For CVs & 3 wheelers Due To A Low Base
* Estimate A MoM Decrease Of 30% For Tractors, 6% For Two-wheelers
• Est An Increase Of 20% For CVs & 2% For Passenger Vehicles
JEFFERIES ON AUTOS : 16.12.2021
*Indian auto industry continues to witness divergent demand trends across segments. Jefferies says
*Indian Auto Industry Continues To Witness Divergent Demand Trends Across Segments
* Trucks Are Leading In Growth With Dec Mth to-date Registrations Up 23% YoY
* Passenger Vehicles Have Improved Sequentially In A Seasonally Weak Period As Chip Issues Ease
* 2-wheelers Are Broadly In-line With Historical Seasonality
CLSA ON AUTOS : 02.09.2021
* August 2021 Saw A MOM Decline In Volume Across Most Segments
* We Estimate A MOM Increase Of 6% For Two Wheelers (2W)
* See MOM Decline Of 18% For Tractors, 12% For PVs, 11% For CVs
* In PVs, Honda & Kia Outperformed While Maruti & M&M Significantly Underperformed
* Compared with Aug 2019, Tata Motors Outperformed Industry in PV Segment
* Among 2Ws In Domestic Mkt, Honda & TVS Performed Better Than Royal Enfield, Hero
* Within CVs, M&HCVs Saw A Rise Of 14% Whereas LCVS Declined By 19% In August 2021
* Compared To Aug 2019, Mahindra Tractor's Volume Rose 44% & Escorts' Rose 41%
NOMURA ON AUTOS : 29.06.2021
* Nomura expects strong recovery in global automotive demand over 2021-22, upgrades Motherson Sumi to Buy, and is alos positive on Bharat Forge, Apollo Tyres & Bajaj Auto
* Expect Strong Recovery in Global Automotive Demand Over 2021-22
* Inventory Days Are Quite Low At 23 Days
* Expect Production To Reach A New High Of 18.3mn In CY22
* Strong Opportunity For Global Plays
* Motherson Sumi, A Key Beneficiary Of Strong Production, Premiumisation & Electrification
* Bharat Forge's New Lightweight Forging Biz Should Benefit From Strong Global Demand
* Bajaj Auto's 2-wheeler Export Outlook Strong On Oil/Commodities
* Apollo Tyre Will Benefit From Strong Tyre Demand In EU
* Upgrade Motherson Sumi To Buy, Target at €301/Sh
* Buy Call On Bharat Forge, Target At *924/Sh
* Buy Rating On Apollo Tyres, Target At *302/Sh
* Buy Call On Bajaj Auto, Target at 24,847/Sh
