Low base, recovery in demand to drive up auto firms' Q4 earnings

Recovery in the African and Latin American markets should help exporters post better growth than the domestic market

Aided by a lower base because of last year’s lockdown and recovery across segments, auto companies are expected to post average revenue growth upwards of 35 per cent year-on-year (YoY) in the March quarter (Q4). Though wholesale numbers declined, compared with the festive season sales, factory dispatches remained strong despite multiple price hikes and lower discounts. With the overhang of supply chain issues and the marriage season coming up, automakers looked to build up inventory and this resulted in double-digit volume growth.   

Among two-wheelers, sales of TVS Motor and Eicher Motors were volume led, while for the larger two-wheeler makers