21 Feb , 2024 By : Debdeep Gupta
Two-wheeler stocks deliver mixed returns after muted growth forecast for Feb, CLSA added that the competition in the space is escalating, especially in the EV and premium segment
Two-wheeler automobile stocks were a mixed bag in the morning trade on February 21 after global brokerage firm CLSA predicted a mid-single-digit growth in volume this month.
At 11:00 am, shares of Bajaj Auto Limited were trading at Rs 8,255, down 0.5 percent from the previous close on the NSE, while Hero MotoCorp slipped 1.3 percent to Rs 4,603. Eicher Motors, however, snapped its two-day losing streak and gained 1.5 percent to trade at Rs 3,885, and TVS Motor Company was up 0.2 percent.
"Retail volumes in two-wheelers will grow at mid-single digits in February despite having 29 days in comparison with 28 days during the same month last year," CLSA analysts said in a report.
The broking firm added that the competition in the space is escalating, especially in the electric vehicle space and premium motorcycle segment. This could potentially affect the margins of original equipment manufacturers (OEMs).
On the electric vehicle segment, CLSA said that despite an increase in discounts, EV sales are poised to remain flat in February.
In January, two-wheeler sales rose 15 percent to 14,58,849 units on the back of an improvement in vehicle availability, the introduction of new models, and a shift towards premium options.
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