Auto Companies: High On Two Wheeler Sales, But Slip Down On Four Wheelers

Tata Motors the flagship company of Tata Group has reported a plunge by around 24% in its total sales by selling 37525 units during May 2014, as compared to the same month of previous year. On yearly basis the domestic sales and export both have plunged by 24.4% and 17.6% respectively for the month of May 2014.

On the domestic front, the commercial and passenger vehicles sales were down by 27% and 17% respectively as compared to corresponding month of last year. Even the large commercial vehicle (LCV) sales were down by 34% on yearly basis to 15991 units during May 2014. In the passenger vehicle, the combined sales of Nano, Indica and Indigo has plunged by around 22% as compared to the same period of previous year. Whereas, the sales in volume of SUV segment comprising of Sumo, Safari, Aria and Venture has surged by around 4% for the month of May 2014, as compared to the corresponding month of last year. The Jaguar and Land Rover (JLR) domestic sales have plunged by almost 14% on yearly basis by selling 203 vehicles against 236 units during May 2013.

Ashok Leyland, the flagship company of Hinduja group, sold 6632 vehicles during May 2014, reporting a fall by 8.7% as compared to the same month of previous year. In the commercial vehicle segment, the LCV sales has plunged by 25% on yearly basis by selling 4884 units, whereas in the M&HCV segment the sales has reduced by 1% by selling 1748 units during May 2014 as compared to May 2013.

Eicher Motors reported 86% growth in total sales of motorcycles by selling 25011 units during May 2014, as against May 2013. It has reported 89% jump in sales of motorcycles with the engine capacity upto 350cc during the month of May 2014, at 22,357 units. It also reported robust 62% growth in sales of motorcycles with engine capacity exceeding 350cc at 2,654 units in May 2014 as against 1,643 units in May 2013. The exports stood at 501 units in May 2014 as compared to 423 units in May 2013, a growth of 18%. In the earlier release the company had posted total sales of 3685 units in the bus and trucks segment, representing a flat growth.

From the above information we can say that other than two wheeler manufacturer, the four wheeler manufacturers are still under pressure to sell more vehicles, given the roadblocks they have to face to attain such high numbers. But as the economy has started to show some positive signs of improvement (GDP grew at a rate of 4.7% for FY14 as against 4.5% during FY13) and as a stable government is at the center, we expect the auto sales to improve in the coming months.