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Sector Performance

In the truncated month of February, the auto industry posted a mixed bag on a yoy basis. SUV, tractors and exports posted strong performance yoy as well. Most of the companies posted robust sequential performances despite lower number of days in Feb. Rural sales were buoyant, bolstered by positive cash flow momentum from the Kharif harvest & favorable reservoir levels, which led to good sowing for the Rabi season, further driving tractor sales. Premium 2W sales grew well in the month. In PVs, M&M posted healthy growth both yoy and mom, while MSIL and TaMo posted good sequential growth.CV sales continued to reel under pressure. Special mention has to be there for Exports which have seen a strong expansion and are highlight of each segment.

Company wise performance

MSIL posted just 1% growth in total sales at 199K. Domestically, the sales grew flattish, while Sale to other OEMs grew by 111% yoy to 10,878 units. Mini portfolio of MSIL fell by 31% yoy, while compact sales have grown by 1.8% yoy and reported a fall of 11.3% mom. UV growth moderated at 6.2% yoy as competition intensified. CV segment of MSIL reported de-growth of 13.3% yoy and 33.7% mom respectively. Whereas Hyundai has seen de-growth in its domestic sales, which pulled down overall sales numbers. Its domestic sales degrew by 12%, while exports fell by 5% mom

Mahindra & Mahindra (M&M) reported superb numbers across the segments. Its PV segment grew by 18.9% yoy, CV by 4.4% yoy, and 3W sales grew by 3.8% yoy, tallying domestic sales to 83,702 units. M&M has demonstrated substantial growth in its overseas markets, with exports almost doubling. M&M’s domestic Farm Equipment Sector (FES) sales witnessed a robust growth of 18.7%, while exports went up by 6.2% yoy.

On other hand TaMo reported overall fall in growth. Its PV de-grew by 9.4% yoy whereas CV declined by 8.3% yoy on the back of weak SCV and pick up segment growth of 20.5% yoy. Company however reported growth in exports by 34.4% yoy.