Auto Monthly Update – February 2010

During February 2010, Indian auto industry witnessed a strong growth in volumes backed by strong base effect. Furthermore, pre budget buying in anticipation for hike in excise duty propelled growth rates. On sequential basis, all companies witnessed growth except for Hero Honda and M&M. However the decline for Hero Honda was modest at 2% mom. In the passenger car category, companies continue to clock record sales volumes. Maruti and Tata Motors both recorded highest ever monthly sales for passenger cars with a growth of 20.5% and 48% on yoy basis respectively. Among three wheelers, while volumes for M&M more than doubled, Bajaj Auto witnessed a growth of 58.8% yoy.  Momentum in Commercial Vehicles (CV) sales continued led by strong growth in M&HCV segment. In M&HCV portfolio, domestic volumes for Tata motors almost doubled on yoy basis, while LCV segment for Tata Motors grew by 48.6% yoy. Xylo continues to witness strong demand translating into a strong growth of 52.6% yoy in total volumes for M&M. In two wheeler space, Bajaj Auto outperformed with a growth of 74% yoy, while Hero Honda and TVS Motors witnessed growth of 16.1% yoy and 15.4% yoy respectively.