Two-wheeler cos go on a joy ride

The automobile industry played a pivotal role in boosting overall corporate earnings growth during the December quarter (Q3FY24), with most automakers experiencing a year-on-year increase in sales volumes last quarter, positively impacting their revenue performance.

- Vineetha Sampath

Sure, growth rates varied across companies, but the path was led by the two-wheeler segment with Bajaj Auto Ltd, TVS Motor Co. Ltd, and Hero MotoCorp Ltd seeing revenue growth of 21-30%. This show was the result of superior volume performance in the segment. However, Eicher Motors Ltd, the listed parent of Royal Enfield, bucked the trend as weak exports took a toll on its volumes.

Next in line was the passenger vehicle segment, where companies with a significant portion of utility vehicles in their portfolio like Mahindra & Mahindra Ltd (M&M) benefitted given the rising preference for premium vehicles. M&M reported a 24% revenue growth in the auto segment, while Maruti Suzuki India Ltd, with a portfolio dominated by mini and compact cars, clocked a 15% revenue growth in Q3.