Auto sales recorded a superlative performance after the festive season, riding on the back of upbeat consumer sentiment, benign interest rates and economic recovery. All manufacturers showcased hikes in sales with new launches dominating volumes for the two-wheeler, three-wheeler and passenger vehicle segments.
The commercial vehicle segment continued its growth in lieu of a low base effect, coupled with improving industrial production volumes. The light commercial vehicle (LCV) and utility vehicle (UV) segments also continued their growth momentum. The volumes beat market expectations of a decline after festive season buying, affirming the upturn viewed for the auto industry in the future.
MarutiSuzuki India Ltd recorded a robust 66.6% year-on-year (y-o-y) growth. The company grew on the exports front, at 128.6% y-o-y, on the back of rising sales of A-Star in Europe. Going ahead, with the scrappage norms implemented in Europe coming to an end this December, we believe that the company will clock a month-on-month (m-o-m) fall on the exports front at an average of around 11,000 export vehicles on a monthly basis.
Graphic by Yogesh Kumar; photo by Madhu Kapparath / Mint
Mahindra and Mahindra Ltd (M&M) continued the momentum in its monthly sales in the auto division with an overall growth of 75.8% y-o-y, led by growth in the UV and the LCV segments at 102% and 157.6% y-o-y, respectively. The company has grown extremely well on the exports front, growing at around 105.8% y-o-y across segments. The tractor segment grew by a 48.2% y-o-y, aided by a strong 45.8% y-o-y growth in the domestic tractor volume and a higher-than-expected recovery posted in the export tractor segment of 83.6% y-o-y.
Tata Motors Ltd reported a robust 65.5% y-o-y growth in total volumes with the medium and heavy commercial vehicles segment leading the growth at 116.4% y-o-y.
Lacklustre exports, however, affected the company’s performance to an extent. The management has guided for positive growth with sales of the Nano (which sold around 14,000 vehicles since its launch in July) and the world truck (launched in October) picking up since their launch. Jaguar-Land Rover sales have continued their momentum since its launch, with November clocking the highest figures so far.
Hero Honda Motors Ltd reported the lowest growth in the two-wheeler pack, with a 31.8% y-o-y growth. The management has reported growth across segments, with the basic 100cc segment reporting strong growth, and the 150cc and scooter segments reporting y-o-y growth of over 30% and 40%, respectively.
Bajaj Auto Ltd led this segment with a striking 73.2% growth on the back of its key brands, Pulsar and Discover, performing well in the month. Bajaj Auto will also launch an all new, sub-150cc Pulsar and expects good response for the launch. TVS Motor Co. Ltd clocked a 22.8% y-o-y growth due to the decent growth registered by its scooter and moped segments. It has also launched the new TVS Jive and the TVS Wega and expects them to add around 15-20% to its monthly sales.