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
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 charges, 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 the ability to stand challenges because of the impact of the latest axle load norms, liquidity crunch, and non-availability of retail finance. The tractor segment became weak in February because of a better base of the ultimate year and subdued farm sentiment.
Three-wheeler (3W) sales have been mixed because of the remaining year’s excessive base. Two-wheeler volumes had been additionally mixed for gamers in this space. Passenger automobile (PV) income preserves disappointment due to a higher fee of possession, a high base of final year, and damaging macro elements.
Commercial automobile – continues to be below stress
The negative impact of new axle load norms and macro challenges, led by liquidity problems, financing issues, rising hobby charges, and a monetary interest slowdown, has dampened client demand sentiment for CVs. The long-term outlook stays 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 percent 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 a flat increase in their month-to-month volumes due to a decline in M&HCV phase volumes. However, it was partly offset using upward thrust in LCV volumes.
Cars phase: New product launches to help
The car segment has revealed a weak spot for eight consecutive months. Increased general value ownership led by rising interest rates and obligatory long-term insurance has dampened purchaser sentiment. Companies in this space have posted a muted/decline in PV extent for February, though new product launches helped.
Market chief Maruti posted a 3. At the same time as Tata Motors’ three percent decline in monthly volumes grew a percentage. The management of Tata Motors is looking ahead to strong months in advance on the back of the release of its new SUV, Tata Harrier, in January. M&M posted an increase of sixteen. Six percent in its monthly volume, driven by its newly launched XUV300 version.
Two-wheeler (2W) segment: Bajaj Auto continues to do properly
TVS Motor Company announced a yr-on-yr boom of a percent on the back of bike growth (eight. two percent). In the two-wheeler space, Bajaj Auto led the percent 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 continues to deliver disappointing numbers, posting a drop of 14.3 percent.
Three-wheeler (3W): Mixed showing
The general 3W marketplace posted blended numbers in February. TVS posted a solid increase (41.2 percent), and M&M introduced 10 percent growth. Bajaj Auto, the chief within the space, saw an eight. Seven percent decline due to the excessive base of closing 12 months.
Tractors: Gaining on superb rural sentiment
The 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
The 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 due to congestion at the Bangladesh border, new rules and political uncertainty in Sri Lanka, and the Middle East vehicle marketplace drooped.
