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Unit sales decline -21% yoy in September: Maruti's monthly sales
continued to be impacted by the labour unrest at the Manesar plant amidst
slowing industry growth. While domestic sales are down -17%, export
sales came down sharply by -48%. Maruti's unit sales are down by -11%
YTD.
Domestic mini segment witnesses sharpest decline: The Mini segment
(M800, A-Star, Alto, Wagon R) declined -24% yoy, the Compact segment
(Swift, Estilo, Ritz) declined -9% yoy, Super Compact (Dzire) was up +10%
yoy while Vans (Omni, Eeco) declined -15% yoy. Export sales declined
sharply by -48% yoy as offtake from Europe – its largest market remains
muted.
Festive season demand outlook is sedate: The industry is expecting low
single digit growth in this festive season given weaker consumer sentiment.
Hyundai, Volkwagen, Toyota, etc witness sales growth: Hyundai's
monthly sales grew + 12% yoy, Tata Motors + 6% yoy, GM +17% yoy, VW
+39% yoy. Toyota doubled its unit sales to 12,807 units with the newly
launched Etios and Etios Liva clocking ~6k units.
Competition to intensify further: Honda has recently launched its small car
Brio priced competitively between Rs395k and Rs 510k. Hyundai is expected
to launch its small car Eon in October, which will compete with Maruti's
mass market model - Alto. The car is expected to be priced in the range of
Rs.250k-350k.
Labour dispute at Maruti to be resolved: Media (ET) reports that Maruti's
management and workers have resolved their dispute with workers agreeing
to sign a good conduct bond and Maruti re-instating a few dismissed workers.
Normal production will likely resume from Oct 3 onwards. Maruti is
estimated to have had a production loss of ~22,000 units, as per Reuters.
Our View: Over the month, the stock (-0.8% mom) performed broadly inline
with the broader market (-1.3% mom). We re-iterate that Maruti would
continue to face headwinds due to rising competition and slowing industry
demand
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Unit sales decline -21% yoy in September: Maruti's monthly sales
continued to be impacted by the labour unrest at the Manesar plant amidst
slowing industry growth. While domestic sales are down -17%, export
sales came down sharply by -48%. Maruti's unit sales are down by -11%
YTD.
Domestic mini segment witnesses sharpest decline: The Mini segment
(M800, A-Star, Alto, Wagon R) declined -24% yoy, the Compact segment
(Swift, Estilo, Ritz) declined -9% yoy, Super Compact (Dzire) was up +10%
yoy while Vans (Omni, Eeco) declined -15% yoy. Export sales declined
sharply by -48% yoy as offtake from Europe – its largest market remains
muted.
Festive season demand outlook is sedate: The industry is expecting low
single digit growth in this festive season given weaker consumer sentiment.
Hyundai, Volkwagen, Toyota, etc witness sales growth: Hyundai's
monthly sales grew + 12% yoy, Tata Motors + 6% yoy, GM +17% yoy, VW
+39% yoy. Toyota doubled its unit sales to 12,807 units with the newly
launched Etios and Etios Liva clocking ~6k units.
Competition to intensify further: Honda has recently launched its small car
Brio priced competitively between Rs395k and Rs 510k. Hyundai is expected
to launch its small car Eon in October, which will compete with Maruti's
mass market model - Alto. The car is expected to be priced in the range of
Rs.250k-350k.
Labour dispute at Maruti to be resolved: Media (ET) reports that Maruti's
management and workers have resolved their dispute with workers agreeing
to sign a good conduct bond and Maruti re-instating a few dismissed workers.
Normal production will likely resume from Oct 3 onwards. Maruti is
estimated to have had a production loss of ~22,000 units, as per Reuters.
Our View: Over the month, the stock (-0.8% mom) performed broadly inline
with the broader market (-1.3% mom). We re-iterate that Maruti would
continue to face headwinds due to rising competition and slowing industry
demand
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