Investing.com -- Morgan Stanley reported that Indian automobile manufacturers remain positive about sales volumes, with alternate powertrains including electric vehicles and compressed natural gas seeing strong demand.
Maruti Suzuki India Limited recorded a 40% increase in CNG bookings and a 100% increase in battery electric vehicle bookings. Tata Motors is experiencing 2.5 times higher BEV bookings, while Hero MotoCorp is expanding capacity from 20,000 to 30,000 units.
Commodity cost pressures range between 4% and 6% for manufacturers. Supply chain challenges related to manpower and gas availability were reported but appear to be stabilizing.
Automobile manufacturers have implemented measured price increases, though a portion of commodity cost pressures remains unaddressed as companies balance growth objectives with profit margins.
The export outlook varied among manufacturers. Maruti Suzuki and Hero MotoCorp indicated strong export momentum. Manufacturers noted challenges in oil-dependent economies and near-term issues in the Middle East region.