Nomura Group, a Japanese financial services provider, has released a report where analysts have given the estimated numbers for the growth of the automobile company in the previous market. Apart from that, the companies will release their original sales numbers on 1 June 2024 including M&M, Bajaj Auto, and Tata Motors. However, Nomura analysts mention some companies have an increased demand while others lagging. Which are those companies, let us find out below.
Nomura Group Analysts Releases The Expected Performance Of The Automobiles Company In The Current Quarter
Nomura analysts’ reports clearly show that the market appears as one that is trending and high in demand. However, the real picture can be something else. There is a need for the analysis in depth. The outer look points out the 6% growth of the passenger vehicles segment. While the actual results can be different.
Maruti Suzuki has a market share of 40.6%. However, there are not many expectations from its new launch yet. The company released a new Swift Model. However, the increase in competition can be another big reason behind the lack of results. While Mahindra and Mahindra have a good response. They are working on the utility vehicles segment leading to new launches like XUV 3XO.
Sharemarket brokers love M&M. However, might fall by 3% for the previous month. The two-wheeler demand is also expected to increase with 12% YOY growth. The analysts are positive about the growth of medium and heavy commercial vehicles. Ashok Leyland, a prominent name in commercial vehicles expects to grow by 15% YOY. While Tata Motors can make a 22% growth. Tata being a stable company, expects the highest growth.
People know Tata Motors for its high-quality commercial and personal use vehicles. The tractor sales are expected to fall. It can also be a result of an increasing number of farmers withdrawing from farming. The reports also estimate positive results in the upcoming financial year. As for FY25, the analysts expect a growth of 5% in automobiles. The sales are also expected to fall because of other reasons like increasing heatwaves and temperature, fewer marriages due to off-season, and elections.
Everything contributes to the sales of automobiles. It also includes natural climatic factors as well. Apart from these temporary factors, there are other factors like increasing competition from companies like Ola, TVS, and Bajaj Auto. Ola is trying to capture the two-wheeler electric vehicles market at a high speed. Stay tuned for more information on our website.