Jefferies set out a preference for two-wheelers over four-wheelers in an auto sector note dated 2 November, naming TVS Motor Company and Eicher Motors as its top Buys after festive two-wheeler registrations rose 11% year on year against 6% for passenger vehicles.
TVS Motor closed 1.98% lower at Rs 4,195.20 on Friday, finishing at its intraday low after a high of Rs 4,313.70. Eicher Motors closed 0.25% lower at Rs 7,220.
Why Jefferies prefers two-wheelers
The registration gap is the core of it. Festive two-wheeler registrations grew 11% year on year while passenger vehicle registrations grew 6%, so the segment Jefferies prefers is growing at close to twice the rate of the one it does not.
On October wholesales, the house says growth against its own estimates was strongest for TVS, Maruti Suzuki and Hero MotoCorp. TVS reported October sales of 700,134 units against 543,557 a year earlier, the largest absolute volume among listed manufacturers.
What the registration and wholesale split means
Registrations and wholesales measure different things, and the note uses both. Wholesales are dispatches to dealers; registrations are vehicles actually bought and registered by customers. When a ...