September was a mixed bag for auto sales. Car, two wheeler and heavy truck sales faced pressure YoY, whereas UVs and LCVs posted positive growth. Weak consumer sentiment (due to high inflation and interest rates) in conjunction with delay in the festive season this year by a month resulted in YoY decline in most segments. Though there was some recovery on sequential basis in cars and tractors. We prefer Maruti Suzuki India (MSIL) on expectation of faster-than-expected ramp up in production at the Manesar plant and exciting new launches (new Alto 800cc on October 16) ahead of the festive season.
��
-->
Passenger vehicles: MSIL pushes petrol pedal; new launches aid UVs
Most car makers posted YoY sales decline due to weak buyers’ sentiment. A month’s delay in the festive season also played its role in the high base. MSIL’s sales surprised positively in the entry level petrol cars segment (early sales push before festive season), whereas Ertiga sales remained healthy at above the 7k mark. Toyota, Ford and General Motors sales declined 5%, 8% and 27%, respectively. Mahindra & Mahindra (M&M) continued to benefit from strong UV demand and new launches; hence, reported 26% YoY growth. Tata Motors (TTMT) posted 17.7% YoY decline.
Commercial vehicles: Heavy vehicles lose steam; LCVs full throttle
Weakness continued in the medium-to-heavy truck segment. However, the light commercial vehicle segment continued to benefit from shift to the hub-and-spoke model. While TTMT reported 15.8% YoY decline in MHCVs, LCVs grew 18.9% YoY. Eicher Motors (EIM) reported 32% decline in total CV sales. Ashok Leyland (ALL) is yet to report sales numbers.
Tractors: Sequential recovery before festive season
M&M reported 19.6% YoY decline in domestic tractor sales. However, sequential recovery (up 52.6% MoM) was likely on sales push before festive season than real demand.
Two wheelers: Lukewarm demand
Weakness continued in this segment with TVS Motor (TVS) reporting 21% sales decline. Hero MotoCorp (HMCL) and Bajaj Auto (BAL) are yet to report numbers. We expect them to report 10% and 13% YoY decline in sales. Royel Enfield is expected to report sales of ~10k units.
Regards,
No comments:
Post a Comment