Auto volume update – June 2013

India Infoline News Service | Mumbai |

Auto volume update – June 2013

Passenger cars and UVs: Weakness persists

Weakness in car sales continued to reflect in the major OEMs monthly sales numbers for June 2013. Market leader Maruti reported a fall of 8.2% yoy in its domestic passenger car volumes.  The contraction was largely uniform in all the three Mini, Compact and Super compact categories with a reported decline of ~7-8% each. Dzire sales at 12,548 units indicated a sharp 27.3% mom decline. Maruti’s exports tumbled by 43% yoy owing to sustained weakness in European car market. Tata motors also reported weak sales in its domestic passenger car portfolio, recording decline of 29.2% yoy.


UV category which has been growing robustly witnessed pressure in bygone month and the competition intensity and higher base seemed to be catching up. Ertiga volumes were subdued and the Maruti’s UV category reported a decline of 11.4% yoy. M&M also reported weak passenger UV sales numbers at 17,232 units, implying contraction of 12.9% yoy (last decline was in Sep-11). Going ahead, we believe amidst a tough environment and higher base the UV category will see moderation in growth rates in FY14.


CVs: Recovery remains elusive

Commercial vehicle sales continued the dismal run with weakness visible in LCV category also, which has otherwise done very well in FY13. Tata Motors LCV sales de-grew by 9.1% yoy (second consecutive month of yoy de-growth). The M&HCV category continued to remain sluggish, and Tata-Motors recorded a decline of 12% in the domestic M&HCVs sales. On back of expectations of a good monsoon, we expect the industry to record low single digit growth in the H2 FY14 on a low base.

Tractors: Encouraging sales

Following a dismal FY13, tractor sales have been very encouraging in FY14. M&M sold 26,723 units in June 2013 in the domestic market, implying expansion of 19% yoy. Notably, in Q1 FY14, domestic tractor volumes for M&M have grown by 26.2% yoy. We expect superior profitability in the quarter results for M&M. 


2-Ws: Weak domestic sales from TVS motors

TVS motors reported weak 2-W sales in domestic market, reporting a decline of 7.1% yoy in its total 2-Ws domestic volumes. However 2-W exports rose by 14.1% yoy to restrict the total 2-W volume decline to 4.9% yoy. Total motorcycle sales declined by 3.7% yoy and moped volumes declined by a sharp 9.9% yoy. Total scooter volumes marginally grew by 1.8% yoy.


3-Ws: Robust exports for TVS

TVS and M&M declared their 3-Ws numbers with TVS reporting a whopping 108% yoy growth in total 3W sales. The growth was stemmed by export sales, which at 6,027 units were 173% yoy. In the domestic market, M&M reported a fall of 10% yoy and TVS reported a decline of 29% yoy.


CVs: Ashok Leyland’s LCV dost decelerates

Disappointment came in Ashok Leyland’s June-13 sales numbers also, wherein it sold 4,714 units in M&HCV category (-36.5% yoy; lowest since Nov-12). The LCV (Dost), which has been the growth driver for the company showed deceleration with volumes of 2,253 units. YTD, Tata motor’s and Ashok Leyland’s LCV volumes have declined 5.6% each, underlining the slowdown catching up in this category.

 

2-Ws & 3-Ws: Bajaj 2-Ws sales affected by strike at Chakan plant

Bajaj reported a decline of 20% yoy in its motorcycle volumes, partly affected by the strike at Chakan plant which caused a loss of ~20,000 units. The decline was less prominent in Hero Motocorp’s 2-W sales on back of cushion from volumes in the scooter segment which has been faring relatively better. 3W continued to do well and Bajaj grew its total 3-W sales by 53.8% albeit on a lower base.


June 2013 auto volume data

Jun-13
Jun-12
yoy (%)
May-13
mom (%)
YTD FY13
YTD FY12
yoy (%)
Maruti








A: Mini
31,314
34,198
(8.4)
31,427
(0.4)
97,668
94,813
3.0
A: Compact
20,996
22,624
(7.2)
17,147
22.4
59,678
72,986
(18.2)
A: Super Compact
12,548
13,741
(8.7)
17,265
(27.3)
49,259
46,958
4.9
A: Midsize
314
408
(23.0)
503
(37.6)
1,418
1,447
(2.0)
A: Executive
-
6
-
-

-
21
-
Total Pass cars
65,172
70,977
(8.2)
66,342
(1.8)
208,023
216,225
(3.8)
Uvs
4,997
5,638
(11.4)
4,307
16.0
14,622
18,965
(22.9)
Vans
6,833
6,916
(1.2)
7,172
(4.7)
22,701
 

Advertisements

  • Save upto Rs.2.67 lakh with Pradhan Mantri Awas Yojana ...Know more
  • Now Save Rs.3150 on your Demat Account ...Click here
  • Now get IIFL Personal Loan in just 8* hours...APPLY NOW!
  • Get the most detailed result analysis on the web - Real Fast!
  • Actionable & Award-Winning Research on 500 Listed Indian Companies.