VN Corporate VN Research & Consulting VN Sourcing Practice IndiaNotes
 Like us on facebook  Follow us on twitter  Follow us on LinkedIn  IndiaNotes on Google Plus  IndiaNotes on Pinterest  IndiaNotes on Stumbleupon  Subscribe to our feeds


Stocks  A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
Search
Feedback
You are here : IndiaNotes >> Research & Analysis >> Industries >> Automobiles >> Research

Automobiles: Sales decline across segments

Nirmal Bang | Published: 03 Jul, 2012  | Source : ValueNotes.com | Follow Author | Add to my Favourites


Sales Decline Across Segments

Automobile sales in June 2012 continued their dismal trend as most of the original equipment manufacturers (OEMs) reported decline in sales as the full effect of fuel price hike effected in May 2012 was visible last month. Passenger car sales were hit the most as majority of the OEMs in the car space reported YoY drop in sales. Leading the fall in the passenger car segment were Honda Siel, Tata Motors, Ford India and GM India which reported decline in sales by 22.8% 21.6%, 21.1% and 10.7%, respectively, on YoY basis. Hyundai India reported flattish growth in domestic sales. Maruti Suzuki’s domestic sales were better than Nirmal Bang's expectations as automobile reported a growth of 19.3% YoY, driven by a low base and higher sales of Swift, Dzire and Ertiga models.


Sales of two-wheeler companies were mixed with Honda Motorcycles and Scooters India (HMSI) and Hero MotoCorp (HMCL) reporting positive growth. Market leader HMCL reported muted growth of 4.3% YoY, while TVS Motor Company and Bajaj Auto reported a decline of 7.5% YoY and 5.9% YoY, respectively, as exports plunged. In the commercial vehicle segment, medium and heavy commercial vehicle (MHCV) sales remained weak, with Tata Motors reporting a decline of over 20% YoY, for the second consecutive month, while light commercial vehicle sales continued their growth momentum as both Tata Motors and Mahindra & Mahindra (M&M) reported double-digit growth on YoY basis. Nirmal Bang believes automobile sales in the near term will remain under pressure in the wake of recent fuel price hike and a weak macro economic environment, although a recovery is expected in H2FY13.


Key highlights:

- Maruti Suzuki reported a 20.3% YoY growth in sales, largely on account of low base and higher exports. Its mini segment sales comprising petrol-driven models Maruti 800, Alto, A Star and Wagon R models declined by a less-than-expected 10.4% YoY, but were up 14.4% on MoM basis despite fuel price hike. However, robust demand for diesel variants led to strong sales of Dzire, Swift and Ertiga models. Exports, meanwhile, grew by a robust 27.1% YoY.

- Hyundai Motors India reported a 3.5% YoY growth in sales, driven by 8.1% YoY growth in exports. Its domestic sales were flat on YoY basis.

- Tata Motors reported a 3.0% YoY decline in sales led by lower passenger car and MHCV sales. Its passenger car sales and MHCV sales were down 21.6% and 21.2%, respectively, YoY.

- Honda Siel, Ford India, and GM India witnessed 22.8%, 21.1% and 10.7% YoY drop in sales, respectively, due to weak demand, while sales of Toyota-Kirloskar and Nissan India grew 22.2% and 155.3%, respectively, on account of a low base and sustained demand for diesel-driven models.

- M&M’s automotive segment reported volume growth of 16.1% YoY driven by growth in sales of UVs and LCVs, while tractor sales posted better-than-expected sales of 22,493 units, a growth of 4.4% YoY and 18.3% MoM.

- In two-wheelers, market leader Hero MotoCorp reported muted growth of 4.3% YoY, while Bajaj Auto and TVS Motor Company reported a decline of 5.9% and 7.5%, respectively, YoY due to drop in export sales.

- HMSI reported 52.3% YoY growth in sales driven by higher scooter and motorcycle sales.



  Read full report Click here to read the full report

About Nirmal Bang

Founded in 1986 by Nirmal Bang, the Nirmal Bangis recognized as one of the largest retail broking houses in India, providing an array of financial products and services. Their retail and institutional clients have access to products such as equities, derivatives, commodities, currency derivatives, mutual funds, IPOs, insurance, depository services and PMS. The Group is headed by Mr. Dilip Bang and Mr. Kishore Bang.


For more information please write in to editor@indianotes.com


Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor IndiaNotes.com accept any liability whatsoever arising from the use of any of the above contents.



Have a question?

Sanjay Chhabria
Equity Analyst and Investment Consultant - xxx

Other Articles


Technical Calls

What are technical calls?




Close ad
Avail instant loan on shares at 13% rate of interest!