India Automobile – SIAM Maintained growth forecast ::Sunidhi

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India Automobile – SIAM Maintained growth forecast 

Though the volumes of the companies improved in the month of September pressure remains due to overall economic slowdown. Monthly sales numbers show demand pick up on the back of festive season. Though, due to general negative sentiment prevailing in the market, SIAM revised its growth forecast for FY12 at 11-14% but lowered PC sales growth forecast to 2-4% from 16-18% announced at the beginning of the fiscal.

Industry Sales for September 2011

Total Industry sales for the month of September 2011 stood at 1.8 mn units a growth of 21.9% YoY. Domestic sales recorded a growth of 19.4% YoY, led by M&HCV & Two wheelers segment, which performed well in the month. Export sales stood at 255,971 units up by 39.6% as compared to same month last year.

  

Two Wheeler Segment – Still resilient

In Two wheeler segment Hero Motocorp recorded highest growth, supported by strong demand across the segments. Bajaj Auto & TVS continues to perform well. Foreign players also posted good set of numbers in two wheelers such as Honda Motors, whose sales stood at 178,462 units recording growth of 45% YoY & 11% sequentially. Suzuki Motorcycle India reported growth of 29% YoY to 29,094 while Yamaha Motors grew by 28% YoY to 43,462 units driven by strong growth in the executive motorcycle segment.

Four Wheeler Segment – Festive sales picked up

September sales brought some cheers for the domestic automobile industry as four wheeler players recorded positive growth on the start of festive season. Production losses due to workers unrest was the main reason for Maruti Suzuki’s poor performance. Tata Motors registered 22% growth led by good performance in PC segment, which again recorded positive growth. M&M continued to post strong set of numbers in both auto as well as tractor segment. Other Foreign players also reported a decent volume growth such as Hyundai motors 12% YoY, General Motors 17% YoY. Companies such as Volkswagen reported a 47% jump in September sales to 6845 units on the back of launch of Vento Sedan & Polo Hatchback models. 

Competition Intensifying

Foreign players have been able to increase their market share on the cost of domestic players such as Maruti, Tata Motors etc. Model Variants at reasonable cost offered by foreign players supporting them to firm their foot steps in Indian Automobile Industry.