Auto Sales

ON-GROUND DEMAND-REMAINS ROBUST

Auto sales continued its growth momentum in November’20 amid rise in preference for personal mobility on the back of good festive demand, upcoming wedding season, soft base due to overlapping of Diwali in November this year and continued positive sentiments in rural & semi urban markets. Barring 3Ws, all the segments reported YoY volume growth. But, volumes declined on a sequential basis due to lower-than-expected festive retails in case of 2Ws and production issues for some PV players. In case of 2Ws, while the commentaries from OEMs have been mix, wholesales vis-à-vis expected retails suggests that some inventory correction was undertaken in November. Rural & semi-urban demand continues to remain robust on the back of higher Kharif output, good Rabi sowing and continued government support, thereby driving good demand for tractors, 2Ws and entry-level PVs over the last few months. 3W volume continues to remain muted due to lower demand for shared mobility and issues with availability of financing. CV volume witnessed a gradual recovery, driven by higher demand for LCVs and catch-up in demand for MHCVs as the economy gradually recovers. Gradually increasing demand and channel filling in anticipation of further rise going forward drove CV volumes. Export markets continued to witness robust demand for most segments.

Auto Sales in PV Segment:

In the PV segment, Maruti’s domestic PV sales declined by ~0.3% YoY on account of production issues even as enquiries & bookings remained robust, driven by good festive sales and the upcoming wedding season. This was led by small cars (Mini + Compact Car) sales declined by 2.2% YoY. Hyundai reported ~9.4% YoY increase in domestic volume. M&M’s domestic volume grew by 24.4% YoY, driven by robust festive demand, upcoming wedding season and strong rural sentiments. M&M’s UV sales grew by ~27% YoY as its UVs continued to do well while the new Thar received a strong response.

Auto Sales in 2W Segment:

In the 2W segment, market leader Hero MotoCorp’s domestic volume grew by ~13.8% YoY on the back of record retail sales (over 14 lakh units) during the festive period as motorcycles continued to witness good rural demand and scooter sales improved amid catch-up in demand from urban markets. Bajaj Auto’s 2W volume grew by ~12.1% YoY as exports continued its strong sales momentum. TVS Motor’s 2W volume grew by ~25% YoY on the back of strong festive demand from the domestic market. Sales of mopeds grew by ~21% YoY. TVS’ exports were adversely affected due to the cyclone in Chennai. Royal Enfield’s sales grew by ~5.6% YoY on a gradual ramp-up of operations. RE’s exports grew 122% YoY.

Tractor sales: M&M/Escorts reported domestic tractor sales growth of 55.6%/33% YoY, respectively, as the industry continued to witness robust retail demand, fueled by strong festive season. Rural sentiments remained positive on account of higher Kharif output, good Rabi sowing and healthy cash flow for farmers, driven by government procurement. Channel inventory continues to remain low, which will further support the volumes in the coming months.

CV sales witnessed good YoY growth, driven by robust demand for LCVs, gradual rise in MHCV demand and channel filling. M&M, Ashok Leyland and VECV reported YoY increase in volume by 9.5%/4.8%/3.2%, respectively in total auto sales.

Maruti Suzuki India – Muted Sales in Mini & Compact Cars

The Entry-level & Comact car sales contracted by 2.2% due to the production issues even demand in this segments rise on back of preference for personal mobility.

UV sales grew by 2.4% YoY on account of good demand in Ertiga. Still, we have to see the acceptance on a new petrol variant of Brezza.

Mahindra & Mahindra Limited – Robust Sales in UVs

Due to robust festive demand, UV sale inched up by ~27%. LCV sales increased by 11% and their Bolero Pik Up, Supro, and Jeeto continues to see strong demand from market. The strong rural demand and improvement in economic activities will drive the sales.

Tractor demand continues to be vigorous on higher harvesting on Kharif season. Good Rabi season will be a key driver for tractor demand.

Tata Motors Limited – Strong Demand in PVs

Passenger Vehicles sales grew by 108% on YoY on account of strong demand in newly added products Nexon & Altorz.

Robust Demand in Hyundai, Honda, Kia & MG

Hyundai posted volume growth of 9.4% YoY on strong demand seeing in Creta, Venue, i10 nios, and newly launched flagship product i20.

Kia continues to make a noise in SUVs with the strong demand in Seltos and a newly launched Sonet.

Honda posted robust growth of ~55% YoY with strong demand in its products.

Hero MotoCorp – Strong Demand from Urban Markets

The Scooter segment sales grew by 33% YoY on the back of inch up in demand from urban market and seeing strong demand in 2 wheelers space.

Bajaj Auto – Robust growth in 2 Wheeler Exports

2 wheeler sales grew by ~25% YoY due to strong growth in domestic markets. Domestic 2W volumes grew by ~30% YoY.

Export sales were adversely impacted by cyclone in Chennai affecting ports operation in last week.

TVS Motors – Strong growth across in all segments

2-wheeler sales grew by ~25% YoY due to strong growth in domestic markets. Domestic 2W volumes grew by ~30% YoY.

Export sales were adversely impacted by cyclone in Chennai affecting ports operation in last week.

HMSI – Clocked over the 1Mn units during Oct 20-Nov 20

Honda 2-wheelers retail sales crossed 1 mn units over October-20 – November-20 due to the strong festive demands.