Highlights:
– A disappointing set of February sales numbers by using car majors across all segments
– New axle load norms, tight liquidity, and non-availability of finance weigh on industrial automobile manufacturers
– New product launches aiding passenger automobile and -wheeler income
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Challenging times retain for automobile majors, with their sales numbers for February declining. The decline is due to subdued client demand sentiment due to slowing business output, tight liquidity, non-availability of retail finance, higher interest charge and moderate financial interest ahead of popular elections scheduled for April-May.
Commercial car (CV) section numbers have been combined for gamers in this area. The section maintains to stand challenges because of the impact of latest axle load norms, coupled with liquidity crunch and non-availability of retail finance. Tractor segment changed into weak in February at the back of a better base of the ultimate year and subdued farm sentiment.
Three-wheeler (3W) sales have been mixed because of a completely excessive base of the remaining year. Two-wheeler volumes had been additionally mixed for gamers on this space. Passenger automobile (PV) income preserve to disappoint due to a higher fee of possession, a high base of final yr and damaging macro elements.
Commercial automobile – continues to be below stress
The negative impact of new axle load norms and macro challenges, led by way of liquidity problems, financing issues, rising hobby charges and a slowdown in monetary interest, have dampened client demand sentiment for CVs. The long-term outlook, but, keeps staying superb because of the focus on production and infrastructure and growth in mining interest.
Company-wise, Tata Motors registered a 9 percent year-on-yr (YoY) decline in CV quantity, led through 17. Three percentage and zero.7 percent fall within the medium and heavy commercial automobile (M&HCV) and mild commercial automobile (LCV) segments. Volvo Eicher Commercial Vehicles (VECV) additionally witnessed a 6.7 percent drop. Ashok Leyland and Mahindra & Mahindra (M&M) published flat increase in its month-to-month volumes due to decline in M&HCV phase volumes, however, was partly offset by means of upward thrust in LCV volumes.
Cars phase: New product launches to help
Car segment maintains to reveal a weak spot for the 8 consecutive months. Increase within the general value ownership led by way of rising interest rate and obligatory long-time period insurance have dampened purchaser sentiment. Companies on this space have posted a muted/decline in PV extent for February, though new product launches helped.
Market chief, Maruti, posted a 3. Three percent decline in monthly volumes, at the same time as Tata Motors’, grew a percentage. The management of Tata Motors is looking ahead to strong months in advance on the back of a release of its new SUV, Tata Harrier, in January. M&M posted an increase of sixteen.6 percent in its monthly volume, driven with the aid of its newly launched XUV300 version.
Two-wheeler (2W) segment: Bajaj Auto continues to do properly
In the two-wheeler space, Bajaj Auto led the percent with a growth of 6.3 percent in February, pushed through aggressive pricing actions taken via the management in its entry-stage section. The impact of that’s subsiding on marketplace leader Hero MotoCorp, which witnessed a two percent decline in its monthly sales. Eicher Motors maintains to deliver disappointing numbers, posting a decline of 14.3 percentage. TVS Motor Company announced a yr-on-yr boom of a percent on the back of growth accruing from bikes (eight.2 percentage).
Three-wheeler (3W): Mixed showing
The general 3W marketplace posted blended numbers in February. TVS posted a very strong increase (41.2 percent) and M&M introduced 10 percentage growth. Bajaj Auto, the chief within the space, saw an eight.7 percent decline due to the excessive base of closing 12 months.
Tractors: Gaining on superb rural sentiment
Tractor segment remains mixed with Escorts posting a YoY growth of nine. Nine percent as against a decline of 8.1 percent for M&M. The M&M control expects effective sentiment at the again of currently done direct benefit transfer to marginal farmers and other pro-rural tasks through the authorities.
Exports: Mixed sentiment
Export market was combined for businesses. Maruti and Tata Motors posted a decline in their February sales numbers, while M&M, Bajaj Auto, TVS, Eicher and Escorts noticed a growth in February. Tata Motors’ control stated the decline was because of congestion at the Bangladesh border, new rules and political uncertainty in Sri Lanka and droop in the Middle East vehicle marketplace.
