Auto Sector Performance Report

Indian Auto industry reported strong sales numbers as demand for cars and bikes stayed robust in October on account of festive season combined with lower interest rates and improved consumer sentiments. Lower base effect also one of the reason behind the double digit YoY growth in sales for most of the companies. Maruti Suzuki and Tata Motors were the star performers in October 2009. Mahindra & Mahindra also registered steady growth in sales during october 2009. Among two-wheeler players, Bajaj Auto continued its solid sales growth. TVs Motors also reported strong sales numbers.

Bajaj Auto (BAL) 

In October 2009, BAL, the country’s second largest motorcycle maker, reported sales of 280,455 units compared to 191,840 units a year ago, registering a YoY growth of 46.19 percent. However, on MoM basis, it witnessed a decline of 0.16 percent. Total two-wheelers sales grew by 51.06 percent YoY to 249,974 units and on MoM basis it witnessed a growth of
0.07 percent. Motorcycle sales in October 2009 increased by 52.38 percent YoY to 249,681 units and on MoM basis it registered a 0.22 percent growth. This growth has been led equally by 55,413 Pulsars and 95,139 Discovers ensuring thereby that 60 percent of Bajaj motorcycles are constituted by the more profitable 'bigger and sportier' Pulsar and Discover brands. The Kawasaki Ninja 250R launched on 7th October,2009 exclusively through Bajaj
Probiking has been extremely well received with 127 motorcycles sold in October 2009. BAL reported the highest ever monthly exports in October 2009. Exports grew by 11.88 percent YOY to 84,012 units and 4.13 percent over September 2009.

TVS Motor (TVS) 

TVS Motor reported a YoY growth of 11.89 percent in its overall two wheelers sales volume at 131,029 units in October 2009. However, on MoM basis, it registered a decline of 8.08 percent over September 2009. Motorcycle sales in October 2009 stood at 56,465 units, showing a YoY decline of 4.65 percent. Scooters and mopeds sales recorded a robust growth of 28.82 percent YoY to 74,564 units. Exports sales for the month decline by 26.73 percent YoY to 12,466 units but on MoM basis exports sales registerd a growth of 21.36 percent.
 
Hero Honde (HHML) 

HHML, the world’s largest two wheeler manufacturer for eight straight years recorded its lowest volumes in seven months, possibly impacted by a strike in the Gurgaon belt. HHML posted a 0.48 percent growth in its overall sales volume at 354,156 vehicles in October 2009 vis-à-vis 352,449 vehicles reported a year ago. However, on MoM basis, HHML registered a decline of 11.75 percent.

Mahindra & Mahindra (M & M)

M&M reported 26.25 percent growth in sales for the month ended October 2009 over October 2008. Automobile sales increased to 25,670 units compared with 20,332 in the same month last year. However, on MoM basis, it witnessed a decline of 8.76 percent. The utility vehicles (UV s) and Logan sales for the month ended October 2009 grew by 25.39 percent to 18,811 vehicles against 15,002 vehicles reported a year ago. But on MoM basis, ti posted a decline of 16.29 percent. On a YoY basis, LCV sales were up by 36.75 percent during the month to 841 units. On MoM basis also it posted a growth of 20.49 percent. Three-wheelers segment witnessed a growth of 14.11 percent. Exports sales for the month increased by 161.43 percent YoY to 1,132 units, On MoM basis exports sales registered a growth of 61.02 percent.

Maruti Suzuki (MSL) 

MSL, India’s largest passenger car maker, reported total sales of 85,415 units in October 2009, registering a YoY growth of 32.45 percent and 2.53 percent MoM basis. The domestic sales grew by 21.01 percent YoY. A3 segment, where the company attained leadership position last year and continues to remain strong, reported a robust growth of 62.68 percent to 8,804 units compared to same month last year. On MoM basis it witnessed a growth of
19.68 percent. C segment comprising of Omni and Versa, registered a YoY growth of 26.03 percent to 8,018 units. However, on MoM basis, it posted a decline of 3.36 percent. A2 segment comprising of Alto, Wagon-R, Zen, Swift, A-star and Ritz registered a YoY growth of 18.43 percent to 51,437 vehicles while on MoM basis it reported a decline of 2.04 percent. The sales of A1 segment comprising M-800 decreased by 5.53 percent YoY to 3,124 units.
MSL reported strong exports figures in October 2009 also. Exports grew by a massive 158.51 percent to 13,864 units over 5,363 units reported in October last year/.

Tata Motors 

Tata Motors, the market leader in commercial vehicle segment, reported a total sales of 53,404 vehicles in October 2009, registering a YoY growth of 34.42 percent, as compared to 39,729 vehicles sold in October last year. On MoM basis it witnessed a growth of 1.70 percent. The company’s commercial vehicles sales in October 2009, stood at 30,541 units, showing a YoY growth of 59.45 percent, against 31,474 vehicles sold in the same month last
year. The light commercial vehicle (LCV) segment reported sales of 18,625 units, registering a growth of 57.40 percent YoY. Sales of its medium and heavy commercial vehicles (M&HCVs) witnessed a YoY growth of 62.76 percent to 11,916 units. Passenger vehicles reported total sales of 22,232 vehicles in October 2009, showing 17,378 percent growth over October 2008. Sales of Tata cars witnessed a YoY growth of 24.52 percent to 17,557 units
and sales of the Tata Nano were 3,018 units. The Indica range sales were 9,640 units, showing a growth of 2 percent over October last year. The Indigo range recorded sales of 4,899 units, reported a growth of 6.1 percent over October last year, reversing th decline after seven months due to the launch of the next generation all-new Indigo Manza. The Sumo and Sagari range accounted for sales of 2,454 units, lower by 15.79 percent over October last year. In Ocober 2009, Tata Motors reported 19.91 percent YoY decline in its
exports segment to 2,852 vehicles while on MoM basis also it reported a decline of 0.38 percent.

Outlook: 

Auto industry is likely to remain robust for the remaining part of the year on the back of lower interest rates on car loans and improved customer sentiment. Impact of the below average monsoons may be seen with a lag. So the auto industry is like to post steady growth number in coming months on account of lower base effect also.

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