Auto sales numbers for May are set to be released on June 1, and analysts predict mixed results. Dealership inventories are increasing, leading many analysts to speculate that auto manufacturers might slow production if demand doesn't rise accordingly.
However, the forecast of an above-average monsoon is expected to boost farm income, likely increasing demand for two-wheelers.
Commercial vehicle sales are also projected to grow in double digits. Ashok Leyland, in particular, has reported strong earnings and positive management commentary, making it a stock to watch. Although the monsoon predictions are favourable, tractor sales might remain flat as elections could dampen demand.
According to Nomura's report, Ashok Leyland in the commercial vehicle segment could see a 10.5% growth, while Tata Motors is expected to see growth of around 9.1%.
M&M's auto division is forecasted to grow by nearly 23%, driven by SUV sales. However, its tractor sales might decline by about 3%. Maruti is anticipated to see no significant change, as the entry-level car segment continues to struggle.
Among two-wheelers, TVS Motor is expected to be the top performer with a 16.5% growth. Bajaj Auto is projected to grow by about 4% year-on-year, while Hero MotoCorp is expected to remain flat.
Overall, mixed sales data is anticipated, but the commercial vehicle segment, especially Ashok Leyland, is expected to show strong performance.
However, the forecast of an above-average monsoon is expected to boost farm income, likely increasing demand for two-wheelers.
Commercial vehicle sales are also projected to grow in double digits. Ashok Leyland, in particular, has reported strong earnings and positive management commentary, making it a stock to watch. Although the monsoon predictions are favourable, tractor sales might remain flat as elections could dampen demand.
According to Nomura's report, Ashok Leyland in the commercial vehicle segment could see a 10.5% growth, while Tata Motors is expected to see growth of around 9.1%.
M&M's auto division is forecasted to grow by nearly 23%, driven by SUV sales. However, its tractor sales might decline by about 3%. Maruti is anticipated to see no significant change, as the entry-level car segment continues to struggle.
Among two-wheelers, TVS Motor is expected to be the top performer with a 16.5% growth. Bajaj Auto is projected to grow by about 4% year-on-year, while Hero MotoCorp is expected to remain flat.
Overall, mixed sales data is anticipated, but the commercial vehicle segment, especially Ashok Leyland, is expected to show strong performance.
(Edited by : Jomy Jos Pullokaran)
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!