Auto sales numbers – November 2010: Angel Broking

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Maruti Suzuki (Maruti)
Maruti reported robust volume numbers for November, which came in ahead of our
estimates. Overall, volumes grew by 28.2% yoy to 112,554 units (87,807), led by 34.2%
yoy growth in domestic volumes to 102,503 units (76,359). Exports during the month
declined by 12.2% yoy to 10,051 units (11,448). Maruti continued to see strong growth
momentum in the A2, A3 and C segments, posting 32.3%, 27.2% and 76.5% yoy growth,
respectively, in November 2010.


M&M
M&M reported robust overall growth of 26.9% yoy in total sales to 44,661 units (35,181)
in November 2010, aided by 42.9% yoy growth in the farm equipment segment. The farm
equipment segment’s growth was aided by strong performance on the domestic front,
where tractor sales were up 46% yoy to 16,975 units (11,604). The automotive segment’s
sales grew by 18.1% yoy to 26,668 units (22,589). Within the automotive segment, the
four-wheeler pick-up segment grew by strong 41% yoy on the back of strong performance
from GIO and Maxximo. Passenger UV sales grew by 6% yoy, while Logan sales continued
the strong momentum, registering growth of 214% yoy. Sales growth during the month
was restricted due to the week-long shutdown at the plant for maintenance purposes.

Tata Motors (TML)
TML reported flat 0.9% yoy growth in total volumes in November 2010, largely due to
lower-than-estimated performance in the passenger vehicles (PV) segment, which declined
by 28% yoy. However, the commercial vehicles (CV) segment’s sales came in line with our
estimates, posting healthy 19% yoy growth during the month. The PV segment was
impacted by the 85% and 37% yoy decline in Nano and Indica volumes, respectively. Nano
volumes were affected due to the shifting of the production process at the new facility at
Sanand. Indigo range of vehicles, the major driver of sales volume in the PV space for
TML, also reported almost flat 1% yoy growth during the month. Within the CV space,
M&HCV and LCV segments registered growth of 18% and 21% yoy, respectively.

Hero Honda (HH)
HH reported strong 10.5% yoy growth in sales volume, selling 421,366 units (381,378),
led by growth across all segments. The new bikes (New Super Splendor and Splendor Pro)
launched in September 2010 are expected to contribute towards volume growth to a large
extent.

TVS Motor (TVS)
TVS reported lower-than-expected 28.8% yoy growth to 157,041 units (121,945), led by
growth across product categories. While motorcycle sales grew by 39.7% yoy to 62,995
units (45,080), the scooter segment registered strong 44.3% yoy growth to 36,233 units
(25,115). Three-wheeler sales continued to report robust performance, posting 186.9%
yoy growth to 3,159 units (1,101). Exports volume registered marginal 2.4% yoy growth to
14,341 units (14,008).