November Auto sales exhibit mixed trends

The car and bike sales in India in November showed a mixed trend as major auto makers and market leaders Maruti Suzuki, Mahindra and Mahindra and Eicher Motors showed growth while TataMotors and Bajaj Auto registered de-growth. Hero Motor and TVS Motors sales numbers came in flat. All the major Commercial Vehicles makers like Ashok Leyland, Tata Motors and Mahindra Tractors witnessed a strong growth in sales number Y-O-Y driven by recovery in the economic activity in the country.

Passenger and Commercial Vehicle Segment

Market Leader Maruti Suzuki came out with a strong set of numbers. Its Total sales grew by 9.7 percent Y-O-Y from 1,10,147 to 1,20,824 units, led by a good domestic sales. The Super Compact (Dzire Tour) and Utility Vehicle (Gypsy, Ertiga & S-Cross) segment saw a very strong growth of 69 and 57.5 percent respectively. The Compact segment also saw a good pick up with the recent launch of Baleno by growing 19.5 percent Y-O-Y.

The total sales of Tata Motors declined by 7 percent from 41,720 to 38,918 mainly due to the de-growth seen in the passenger and LCV segment which decreased by 12.5 & 16 percent respectively. However, the MHCV segment where the company enjoys  leadership position, continued its good run by growing a firm 21 percent Y-O-Y. The total exports also saw a fall of 17 percent from 4293 to 3573 Y-O-Y.

Mahindra & Mahindra India's leading SUV manufacture registered a 21 percent growth in its sale numbers Y-O-Y. The total sales grew from 34,292 to 41,590 units. Domestic sales contributed mostly to the sales figure as it increased by 22.7 percent Y-O-Y. The Passenger vehicle segment saw a healthy pick up in its numbers as it grew by 36 percent Y-O-Y aided by the new launch TUV300 and growth momentum in existing models. The MHCV space too registered a substantial jump in its sale as it rose by 75 percent Y-O-Y. Mahindra & Mahindra Farm Equipment achieved a domestic sales growth of 47 percent Y-O-Y from 14,207 to 20,819 helped by a good festival demand. The total exports were down by 20 percent. Total tractor sales increased by 42 percent Y-O-Y.

Engineering and farm equipment major Escorts, today reported 9.3 per cent increase in its tractor sales from 4306 to 4706 units Y-O-Y. Atul Auto registered a growth of 5 percent in its sales volume,which rose from 3807 to 4005 units Y-O-Y.

Ashok Leyland posted a 16 percent increase in its sales volume from 7732 to 8971 units. The company kept its volume growing on a Y-O-Y basis due to a pick up in the economy and new order wins by the company both domestically and abroad. The MHCV segment registered 21 percent whereas the LCV segment saw an increase of 6 percent Y-O-Y.

Eicher Motors Commercial Vehicle business saw a good growth in its total sales as it rose by 27 percent Y-O-Y contributed by all the three segments LCV,Bus and HCV.

Two wheeler & three wheeler segment

Eicher Motors Motorcycle division registered a very strong sale growth momentum of 48 percent Y-O-Y from 27,542 to 40,769 units. Companies domestic sales and exports both saw a good traction as they increased by 48 & 33 percent respectively. Models with Engine capacity upto 350cc saw a 52 percent increase in sales.

Bajaj Auto saw a dip in its total sale volume as it registered a de-growth of 6 percent Y-O-Y from 4,74,992 to 4,46,922 units mainly on account of a substantial decline seen in its exports which fell by 17 percent Y-O-Y. However, total motorcycle sale saw a 3.4 percent growth Y-O-Y.

Hero MotoCorp November sales numbers were flat as it rose marginally by 0.61 percent Y-O-Y from 5,47,413 to 5,50,731 units. The Company achieved a landmark of 10 lakh unit sales during the 35-day festive period. A growth of 11 percent Y-O-Y.

Chennai based TVS Motors, saw its total sales come in flat from 2,59,261 to 2,59,022 units Y-OY. The Total domestic sale grew by 2.4 percent Y-O-Y from 2,20,046 to 2,25,401 units. The Domestic two wheeler sale grew by 6 percent on bank of strong growth witnessed in the scooters segment which sold 76,043 units from 62,223 units a growth of 22 percent. Exports decreased by 14.26 percent Y-O-Y.

Overall the auto number remains patchy and soft due to low domestic brand and a weak global environment which has hampered the export growth of auto companies which mostly saw a decline in its exports volume. Going forward, with the economic revival aided by low interest rate and a speedy implementation of GST will help this sector immensely.