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Axis Securities expects Maruti, Hero, TVS, Bajaj and Eicher to post strong Q2 growth on volumes and premiumisation
EV adoption and improved affordability are also expected to support growth at Maruti Suzuki, Hero, TVS, Bajaj and Eicher in the second quarter. Higher commodity costs and supply-chain disruptions could weigh on margins, Axis Securities notes.
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The numbers
Figures from ET Auto Retail
- Maruti, Hero, TVS, Bajaj, Eicher seen posting strong growth
Why it matters to operators and investors
With premiumisation, EV adoption and better affordability named as the growth drivers across all five automakers, partnership and sourcing conversations should focus on premium and EV capabilities while factoring in commodity-cost and supply-chain risk.
What to watch next
- Monthly dispatch and registration data from the five automakers during the Q2 period
- Reported Q2 operating margins against broker estimates
- Management guidance on commodity costs, price hikes and supply availability
- Movements in key commodity prices used in vehicle manufacturing
- Post-result changes in brokerage ratings and target prices on the five stocks
Likely next moves
Our read of what comes next — analysis, not reported by the source.
- Maruti Suzuki and the other four automakers are likely to credit volumes and premium mix for their Q2 growth, and to flag commodity costs as the main margin headwind on their earnings calls.
- Hero MotoCorp, TVS Motor, Bajaj Auto and Eicher Motors may lean on premium and EV models in their commentary to show that growth is not only a function of affordability.
- Automakers facing higher input costs may take selective price increases or adjust variant mix rather than absorb the full cost rise.
- Axis Securities and rival brokerages are likely to revise estimates and target prices after the results, depending on how margins compare with their preview assumptions.
- Component suppliers and dealers may face tighter delivery schedules if supply-chain disruptions persist, and automakers are likely to address this when giving guidance.
The source
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First seen