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Automobiles
March sales volume scale historic peak
For March, sales volume scaled historic peak across players, wherein M&M and
Maruti surprised us the most (15%). M&M led in mom growth (10%) and Maruti in
yoy (28%). Considering, advancement of purchases ahead of Feb budget, mom
growth surprises us. Buy M&M, Hero Honda and Tata Motors.
! All companies, which announced sales volume numbers today, scaled historic peak,
surpassing even the festive months of Oct/Nov.
! In terms of yoy growth, Maruti led the pack with 28.2% growth, closely followed by Mahindra
(19.2%). Whereas in terms of mom growth, M&M led the pack with 10.1% growth, closely
followed by Maruti 9.2%.
! Our channel checks suggest strength in commerical vehicle sector to continue as financers
portfolio are healthy. Passenger vehicle segment has seen increased incentives to absorb
higher volumes.
! In an environment of rising petrol prices, lending rates, our Buys in the sector are Mahindra,
Hero Honda, Tata Motor and Ashok Leyland in that order. We remain cautious and maintain a
Hold rating on Maruti and Sell on Bajaj Auto.
Monthly company sales volume details
! M&M’s March sales volume was impressive : +10.1% mom, +19.2% yoy, +17% RBS est.
Tractors continue to surprise the most with 25% yoy growth. Automotive division sales volume
growth of 13.7% yoy was driven by new products (Maxximo, Xylo piockup).
! Maruti total sales volume surprise us by 14%, driven by compact cars and vans. Exports dip
26% yoy but improve 14% mom. Management highlighted that retail sales have been better
than company dispatches, thereby reducing marginal rise seen in dealer month inventory in
Feb. However channel checks highlight, new and higher promotion schemes helped absorb
higher volume.
! Tata Motors total sales volume was inline with our estimate as the surprise in CV’s (10%) was
eaten away by disappointment in cars. Inspite of high base effect, domestic M&HCV sales
volume record impresssive 11.9% yoy and 32.4% mom growth. LCV continue to scale new
peak. However, cars record 4% yoy and 16% mom due to weakness in Indica range, which
recorded 40% dip.
! Hero Honda sales volume surprised us marginally (3%) as it scales-up to feed the marriage
demand in North India. The strong 24% yoy growth in sales volume helped surpass festival
peak of October by 2.5% to reach historic high.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Automobiles
March sales volume scale historic peak
For March, sales volume scaled historic peak across players, wherein M&M and
Maruti surprised us the most (15%). M&M led in mom growth (10%) and Maruti in
yoy (28%). Considering, advancement of purchases ahead of Feb budget, mom
growth surprises us. Buy M&M, Hero Honda and Tata Motors.
! All companies, which announced sales volume numbers today, scaled historic peak,
surpassing even the festive months of Oct/Nov.
! In terms of yoy growth, Maruti led the pack with 28.2% growth, closely followed by Mahindra
(19.2%). Whereas in terms of mom growth, M&M led the pack with 10.1% growth, closely
followed by Maruti 9.2%.
! Our channel checks suggest strength in commerical vehicle sector to continue as financers
portfolio are healthy. Passenger vehicle segment has seen increased incentives to absorb
higher volumes.
! In an environment of rising petrol prices, lending rates, our Buys in the sector are Mahindra,
Hero Honda, Tata Motor and Ashok Leyland in that order. We remain cautious and maintain a
Hold rating on Maruti and Sell on Bajaj Auto.
Monthly company sales volume details
! M&M’s March sales volume was impressive : +10.1% mom, +19.2% yoy, +17% RBS est.
Tractors continue to surprise the most with 25% yoy growth. Automotive division sales volume
growth of 13.7% yoy was driven by new products (Maxximo, Xylo piockup).
! Maruti total sales volume surprise us by 14%, driven by compact cars and vans. Exports dip
26% yoy but improve 14% mom. Management highlighted that retail sales have been better
than company dispatches, thereby reducing marginal rise seen in dealer month inventory in
Feb. However channel checks highlight, new and higher promotion schemes helped absorb
higher volume.
! Tata Motors total sales volume was inline with our estimate as the surprise in CV’s (10%) was
eaten away by disappointment in cars. Inspite of high base effect, domestic M&HCV sales
volume record impresssive 11.9% yoy and 32.4% mom growth. LCV continue to scale new
peak. However, cars record 4% yoy and 16% mom due to weakness in Indica range, which
recorded 40% dip.
! Hero Honda sales volume surprised us marginally (3%) as it scales-up to feed the marriage
demand in North India. The strong 24% yoy growth in sales volume helped surpass festival
peak of October by 2.5% to reach historic high.
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