Q2 result preview: 2Ws and 3Ws likely drivers of auto sector growth

Muted PV, CV sales volume in Q2 may reflect in performance of segment leaders

Automotive retail sales, in volume terms, for original equipment manufacturers (OEMs) were a mixed bag in Q2FY25.
 

On the one hand, two-wheelers experienced 4.7 per cent year-on-year (Y-o-Y) growth in sales volume, and three-wheeler sales rose by 4.9 per cent Y-o-Y, buoyed by robust rural demand. On the other, passenger vehicle (PV) sales declined by 5.1 per cent Y-o-Y, hit by subdued consumer sentiment and high inventory, while commercial veh­icles (CVs) slipped 3.8 per cent, affected by low government spending and seasonal challenges.

According to Motilal Oswal (MOSL) analysts, PV inventory le­vels have increased amid weaker retail