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Mixed Domestic sales trend. Sales trends: Passenger car sales were
down -2% yoy vs. +4.5% YTD (driven by weak consumer sentiment and
production constraints at Maruti’s Manesar Plant); commercial vehicle
sales were up +22% vs. 19% YTD (driven by light trucks +36% yoy;
heavy commercial vehicle sales are up +6% yoy) and two-wheeler sales
were up +18% vs. 18% YTD.
Key data points on market share: Maruti continued to cede market
share to competition (-590bp YTD) in the passenger car segment, Tata
Motors has gained (+40bp) market share in the commercial vehicle
segment. Hero Honda gained strength in domestic motorcycle market
(+230bps YTD).
Global luxury sales are tepid: In August, luxury brand Audi saw
healthy growth of 17% y/y, while BMW’s and Mercedes-Benz’s growth
moderated to 7% y/y. Since August is a seasonally low-volume month in
Europe, our European Autos team prefers to wait for the September
figures for a better idea on luxury sales trend in Europe.
Competition in car space to intensify: Competition in the Indian car
market continues to intensify with Honda Jazz taking price cuts by
~20%. Given these price cuts, we expect the pricing on the Brio (to be
launched in upcoming festive season) to be extremely competitive.
Hyundai is also launching a small car Eon in competition with Maruti’s
mass market Car Alto. Toyota has launched diesel variants of the Etios
and Etios Liva to cater to the growing demand for Diesel segment cars
given the widening differential between gasoline and diesel.
The auto sector (+1% mom) outperformed a falling Sensex (-2% mom)
during the month. We believe that given normal monsoons this year, we
expect sales growth to pick up in 2HFY12. We re-iterate our OW stance
on Mahindra & Mahindra, given that we expect the OEM will benefit
from healthy rural demand as well as new product launches in the
automotive segment.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Mixed Domestic sales trend. Sales trends: Passenger car sales were
down -2% yoy vs. +4.5% YTD (driven by weak consumer sentiment and
production constraints at Maruti’s Manesar Plant); commercial vehicle
sales were up +22% vs. 19% YTD (driven by light trucks +36% yoy;
heavy commercial vehicle sales are up +6% yoy) and two-wheeler sales
were up +18% vs. 18% YTD.
Key data points on market share: Maruti continued to cede market
share to competition (-590bp YTD) in the passenger car segment, Tata
Motors has gained (+40bp) market share in the commercial vehicle
segment. Hero Honda gained strength in domestic motorcycle market
(+230bps YTD).
Global luxury sales are tepid: In August, luxury brand Audi saw
healthy growth of 17% y/y, while BMW’s and Mercedes-Benz’s growth
moderated to 7% y/y. Since August is a seasonally low-volume month in
Europe, our European Autos team prefers to wait for the September
figures for a better idea on luxury sales trend in Europe.
Competition in car space to intensify: Competition in the Indian car
market continues to intensify with Honda Jazz taking price cuts by
~20%. Given these price cuts, we expect the pricing on the Brio (to be
launched in upcoming festive season) to be extremely competitive.
Hyundai is also launching a small car Eon in competition with Maruti’s
mass market Car Alto. Toyota has launched diesel variants of the Etios
and Etios Liva to cater to the growing demand for Diesel segment cars
given the widening differential between gasoline and diesel.
The auto sector (+1% mom) outperformed a falling Sensex (-2% mom)
during the month. We believe that given normal monsoons this year, we
expect sales growth to pick up in 2HFY12. We re-iterate our OW stance
on Mahindra & Mahindra, given that we expect the OEM will benefit
from healthy rural demand as well as new product launches in the
automotive segment.
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