Top Five Automobile Companies Volume Growth

Indian automotive industry currently lies under one of the largest auto markets in the world. The industry has grown at a faster rate in the last one decade due to the changing lifestyle, low vehicle penetration and rapid urbanization. However, the automobile sector had seen headwinds in the last few quarters due to the slower economic growth, negative sentiment, depreciation in rupee and the rise in fuel prices. However, the Indian automobile sector has started showing early signs of revival with the increase in volumes sales in the last couple of months. The Indian auto market is dominated by few of the major players in the sector like Tata Motor, M&M, Hero Motocorp, Bajaj Auto and Maruti Suzuki India.

To arrive at the below table, we have used the following filters :

• We have taken the top five automobile companies from the S&P BSE Auto index
• We have taken the sales volume of vehicle for March'14, Dec'14 and Mar'13 quarter

Source : BSE India

Maruti Suzuki India (MSIL): MSIL is the leader in car and utility segment with a market share of about 36%. The company stood at first position by registering the highest volume sales, with an improvement of 13% to 324870 units for March'14 quarter as compared with the December'14 quarter. For the coming quarters, the management of MSIL expects a 5-6% volume growth in the domestic market, also expects 10% growth in exports.

Tata Motors (TML): Established in the year 1945, the company has now become India's largest automobile company. TML is at the leading position in commercial vehicle segment and also among one of the top manufacturer of passenger vehicles in India. It enjoys the market share of around 53% in large, heavy and medium commercial vehicles. The company sold 255827 units of vehicle in the March'14 quarter. It showed a growth of 2% in the sales volume on sequential basis.

Mahindra & Mahindra (M&M): The company commenced its automobile manufacturing business in the year 1947. Currently, M&M operations are spread across 18 industries which include aerospace, agriculture, automobile, energy, defence etc. The company sold 191861 vehicles in March'14 quarter. M&M's financial performance for Q4FY14 was good, posted 27% revenue growth to Rs 1476 crore and PAT stood at Rs 337 crore.

Bajaj Auto (BAL): The company manufactures three-wheelers, scooters and motorcycles. BAL has the largest market share of around 54% in the three-wheeler segment. BAL registered total volume sales of 935795 units in Q4FY14. The company, on the financial front, has reported a growth of 10% in its net profit in Q3FY14 on yearly basis. The domestic motorcycle segment showed a good growth in the last couple of months and is expected to see ramp-up in the quarters coming ahead.

Hero MotoCorp: The company is engaged in the manufacturing of motorcycles and ancillary parts. It manufactures a wide range of motorcycles. The company enjoys a market share of around 45% in the two-wheeler segment. Its total volume sales for the March'14 quarter stood at 1589462 units. On the financial front also, the company reported a growth of 11% and 7.5% in its topline and bottomline in December quarter in FY14 on Y-o-Y basis.