Indian Automobile Market Set for Festive Surge: 2W Segment to Lead

Nuvama Wealth Investment Limited forecasts over a 15% surge in the Indian automobile market during the festive season, driven by increased rural demand. The two-wheeler segment is expected to lead, with mass-market OEMs like TVS Motors, Hero MotoCorp, and Bajaj Auto poised to benefit significantly.

The Indian automobile market is poised for a substantial surge of over 15 per cent during the forthcoming festive season, particularly in the two-wheeler (2W) segment, according to a report by Nuvama Wealth Investment Limited. This growth is driven by a rise in enquiries and a revival in rural demand, which makes up over 55 per cent of the 2W market. Enquiries for passenger vehicles (PV) have also increased, with rural demand likely to boost this segment as well.

The report indicates that mass-market original equipment manufacturers (OEMs) such as TVS Motors, Hero MotoCorp, and Bajaj Auto are set to benefit, contrasting with more subdued growth for premium OEMs like Eicher Motors, which produces Royal Enfield motorcycles. New models like TVS Jupiter and Hero Xtreme 125R are expected to further fuel 2W sales growth.

In the PV segment, rural demand accounts for more than 35 per cent of the market share, with growth anticipated in the single digits during the festive period. Utility vehicles (UVs) are expected to see double-digit growth, surpassing that of hatchbacks, benefiting manufacturers such as Mahindra & Mahindra and Tata Motors. Models like the Mahindra Thar Roxx and Tata Currv are projected to attract considerable customer interest.

(With inputs from agencies.)