January 2014 Auto Sales Disappoints Again

The monthly sales numbers for the auto companies have again disappointed. Companies like Maruti Suzuki India, Tata Motors, Mahindra & Mahindra (M&M) cars and Bajaj Auto have witnessed decline in their sales figures. While on the other side TVS Motors have seen increase in their monthly sales numbers. Now, let us take a look at the performance of the companies one by one.

Maruti Suzuki reported decline of 10.32% on YoY basis in its monthly sales numbers for the month of January 2014. The total sales for January 2014 stood at 102416 units. Total domestic sale declined by 6.27% to stand at 96569 units. What needs to be highlighted is that the exports for the reported month have declined by 47.70% on YoY basis to stand at 5847 units. Decline is also witnessed in the sales of M800, Alto, AStar, Wagon R which reported combined sales of 38565 units witnessing a decline of 17%. The sales of SX4 have also declined by 81% to stand at 191 units as against 1012 units reported during the same month last year.

Tata Motors reported 34.35% dip in the monthly sales numbers for January 2014. The total sales for the company came in at 40481 units as against 61660 units reported in January 2013. The Commercial Vehicles segment sold 25683 units for this month witnessing a decline of 39.67%. The passenger vehicles segment reported 27.85% decline in the sales for January 2014 to stand at 10974 units.

M&M reported 13.77% (YOY) decline in monthly sales numbers to stand at 42685 units for January 2014. The sales of passenger vehicles reported decline of 25.47% to stand at 19792 units. However, the tractor segment continues to show strong growth numbers. The tractor sales for the month of January 2014 grew by 15.09% (YOY) to stand at 20109 units.

Coming to the two wheeler space the monthly sales for Bajaj Auto declined by 8.47% on YoY basis to stand at 318171 units. The 2-wheeler segment reported sales of 281390 units down by 6.63% on YoY basis while the sales for CV's declined by 20.50% (YOY) to stand at 6737 units.

Bucking the trend sales of TVS Motors have been on the better side witnessing a gain of 6% on YoY basis to stand at 186313 units. The 2-wheeler and the 3-wheeler reported a rise of 4.70% and 52.49% respectively on YoY basis. The exports also improved by 39.34% for this month to stand at 28875 units.

The woes for the auto companies continue for the first month of the current calendar year. Selling pressure in companies like Maruti Suzuki, M&M, Tata Motors and Bajaj Auto cannot be ruled out. Hence tread cautiously.