Bajaj Auto, Hero, TVS, Eicher Motors, others: Steady 7-9% FY25 volume growth expectations for two-wheelers - CareEdge

Stock Market today: Bajaj Auto, Hero MotoCorp , Eicher Motors, TVS Motor Company share prices have seen their share price rise 49-94% over last one year. The pick up in two wheelers demand in the country has led to these gains. While the two wheeler sales in FY24 grew strong 9.8%, the momentum is expected to continue in FY25.

CareEdge Ratings expects the two-wheeler industry to sustain a steady volume growth rate of around 7-9% in FY25, which is only slightly lower than growth rate in FY24.

Also Read- Nifty Pharma up 48% in the last 1 year; Zydus, Lupin, Glenmark surge over 95% each; what is driving the pharma pack?

Higher sales of electric vehicles (EVs) supported by the Electric Mobility Promotion Scheme 2024 (albeit only through July 2024 but likely to be extended), the expectation of interest rate reductions in the second half of FY25, the high demand for the new models launched, the recovery of exports from their low base of FY24, and a favorable monsoon that is likely to boost rural consumer confidence and income levels are all expected to fuel growth in FY25.

While FY24 growth in Two wheeler sales was also fulled by by combined factors like traction in EV volumes, wider range of models and new launches. However, the key missing links that restricted growth were on account of subdued demand in first half of FY24 , that analysts at CareEdge Ratings attribute to increase in vehicle prices post the implementation of the phase-II of the BS-VI emission norms, higher interest rates and stressed rural incomes.

Also read- Hero MotoCorp share price: 4 key reasons why Axis Securities expects 10% upside for the stock: remains its weekly Pick

Nevertheless, the sales revived in second half of FY24 on the back of festive season demand and uptick in rural sentiments. Sales grew at a robust double-digit pace in each of the two quarters ended March 2024 quarter (y-o-y basis). This double-digit volume growth on a y-o-y basis continued during the months of April and May 2024 as well and is expected to support growth in FY25 too.

The volume momentum is visible for Bajaj Auto, Hero MotoCorp , Eicher Motors, TVS Motor Company and analysts at Nuvama Institutional Equities in their Q1 Preview have said that the wheels of uptrend are still rolling fast and have more miles to go . Q1FY25 auto demand momentum has been robusst, which can benefit Bajaj Auto, Hero MotoCorp , Eicher Motors, TVS Motor Company and others share prices

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions