Oct saw different wholesale trends for the industry between 4Ws (flat YoY) and 2Ws (-15%YoY) reflecting the inventory situation of those sub segments.

Retails for both 4Ws and 2W showed strong improvement in the backdrop of high discounts, easier financing and pent up demand.

There is little confidence in this pick up sustaining if incentives are withdrawn. Weak CV momentum indicates that the underlying economy is probably still shaky.

The few green shoots - 1) there seems to be a genuine uptick in rural demand especially in north and east India where rainfall has been relatively normal and 2) across sub-segments inventory seems to be manageable now going into BS6.

Maruti's wholesales were positive but sustainability of pick up yet remains to be established. Stock is already pricing in a strong recovery. Royal Enfield's volumes were positive.

Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.

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