Skip to main content

Automobile Sector Update - January 2013



Automakers registered sluggish sales for January 2013 on continued weakness indomestic demand led by high interest rates, inflation and slowdown in economicactivity. The medium and heavy commercial vehicle (MHCV) segment continues to remain the most impacted with sales witnessing a significant decline. However, utility vehicles (UV) and light commercial vehicles (LCV) defied the general slowdown and sustained their growth momentum. Among auto majors, while Hero MotoCorp (HMCL) and Maruti Suzuki (MSIL) posted better-than-expected volumes; Tata Motors (TTMT) registered a sharply lower-than-expected performance. Going ahead, we expect the demand scenario to remain challenging in 4QFY2013 as slowdown in economic growth coupled with higher interest rates and fuel expenses continue to dampen consumer sentiments. 

Tata Motors registered a substantial decline of 29.5% yoy (6% mom) in its total volumes led by continued weakness in the passenger vehicle (PV, down 55.6% yoy) and MHCV (down 53.6% yoy) segments. LCV sales however, continued with the growth momentum posting a strong growth of 14.7% yoy. Exports posted a dismal performance as export volumes were down 45.2% yoy (flat mom). Ashok Leyland reported in-line monthly volumes (total sales up 2.5% yoy) as Dost sales recovered after an unexpected fall in December 2012. However, ex.  Dost volumes declined in-line with expectations by 25.4% yoy as the MHCV segment

continued to see significant decline in demand due to slowdown in industrial activity. 

Maruti Suzuki reported better-than-expected volumes, primarily driven by a strong sequential growth in the Mini segment led by the new  Alto. Total volumes registered a decline of 1.1% yoy; nevertheless they surged sharply by 20% on a sequential basis. Export sales however, posted a decline of 22.3% yoy (14.5% mom) during the month; thereby restricting the overall growth.  

Mahindra and Mahindra reported a modest volume growth of 4.5% yoy (11.5% mom) on account of continued decline in farm equipment sales which declined 9.8% yoy led by weakness in the domestic markets (down 8.6% yoy). However, the automotive segment registered a healthy growth of 10.7% yoy (9.3% mom) driven by strong momentum in the passenger vehicle segment (robust growth of 32.9% yoy) on the back of the new launches XUV5OO, Quanto and Rexton. 

Two-wheelers and three-wheelers: Bajaj Auto reported an in-line volume growth of 2.9% yoy (1.1% mom) driven by a healthy growth of 9.8% yoy (2% mom) in export sales. While motorcycle sales benefitted from the new launches; three-wheeler sales were driven by the issuance of fresh permits in Delhi, Karnataka, Hyderabad and Jaipur Hero MotoCorp registered better-than-expected performance with total sales posting a growth of 7.2% yoy (3% mom) driven by the new launches, Ignitor, Passion X-Pro and  Maestro. TVS Motor Company posted better-than-expected volumes, registering a total volume growth of 1.4% yoy (12.6% mom). On a sequential basis, strong growth was witnessed across the two-wheeler product segments with scooters posting a 24.8% growth and motorcycle sales registering a growth of 7.2% led by Phoenix. Source: Angel Broking

Comments

Post a Comment

Popular posts from this blog

NDPMS Stock Advisory

It is entirely possible that NDPMS could have, from time to time, some trading or investment positions in the stocks being discussed on the blog. This blog is not intended for distribution to, or use by, any person or entity, any jurisdiction or country, where such distribution or use would be contrary to local law or regulation. Reproduction in whole or in part without written permission is prohibited.
Post a Comment
Read more

12.1% Equity Return in 10 days !! Review it to believe it !!

This is a pseudo folio. The base folio amount was kept at Rs 1 lakh and was created on September 26, 2015. Most of the positions are still open hence please consider this post as an update on the folio.The folio heat was kept at 10% which in simpler words mean that of all position gets their stop losses hit, the folio will drop maximum by 10%. Risk reward ratio is kept at 3:1 which implies that target points are set at 3 times the risks per position taken. This post is subjected to promotion of NDPMS Stock Markets Training Program. Please read the disclaimer before forming any opinions about the post, stock markets or NDPMS Wealth Management. Disclaimer: The intention of this post is not at all to entice the blog viewers to take up NDPMS Advisory Service. The post is solely used to promote NDPMS Training Program. It is entirely possible that NDPMS could have, from time to time, some trading or investment positions in the stocks being discussed on the blog. This blog is not int...
1 comment
Read more

Professional Trading !!

Professional Trading is a profession where an individual makes his living from trading in stock and commodity markets. A professional that involves prolonged training and experience. It provides you with other various opportunities. It gives you freedom of time and money. It has no competition threat. There are no deadlines, no geographical deadlines, no dependency on staff. You are your own boss.  When people come to the world of trading many think that they only need to learn a strategy and follow the rules of that strategy and they do this for a while. The problem with those who do not first get a good foundation of the markets is that when the markets change or when they have a draw down they start making mistakes. Those mistakes lead to self sabotage even in the healthiest of minds. The process of trading is only enjoyable when your sub conscious mind figure out the right ways for trade. In other words those who start with passion very often find that those feelings are...
Post a Comment
Read more