Hero MotoCorp Dispatches Fall On Weak Motorcycle Sales, Exports
Hero MotoCorp Ltd.'s total dispatches to dealerships fell 6.3% to 3,56,690 units in January as weak motorcycle sales and exports weighed on the sales.
Sales Snapshots (YoY):
Domestic sales fell 2.6% to 3,49,437 units.
Motorcycle sales fell 7% to 3,33,638 units.
Scooter sales rose 2% to 23,052 units.
Exports fell 67% to 7,253 units.
The budget's focus on the continued enhancement of capital expenditure, and investments in long-term priorities, coupled with increasing disposable income in the hands of consumers through direct tax proposals ensure a boost to consumption concurrent to investment-led growth, Pawan Munjal, chairman and CEO of the company, said in a statement.
"Our suggestion is to consider a reduction of GST from 28% to 18% on two-wheelers in the next council meeting. This will go a long way in boosting the much-needed growth of this sector in particular and the overall economy in general, given the multiplier nature of this sector,” he added.
M&M Car Dispatches Jump, Tractor Sales Rise Despite Weak Exports
Mahindra & Mahindra Ltd.'s total passenger vehicle sales jumped 65% year-on-year to 33,040 units.
The growth was despite disruptions in supply chain of crash sensors and air bag control units due to limited availability of semiconductors, the company said in a release.
Sales Highlights (YoY):
Medium duty light commercial vehicle dispatches rose 3% to 18,101 units.
Three-wheeler sales more than doubled to 6,562 units.
Tractor dispatches rose 28% to 28,926 units.
The strong demand in domestic market, offset the 14% fall in tractor exports.
"We are off to a good start to the year with promising Rabi crop outlook as sowing acreage for key crops of wheat, pulses and oil seeds has already surpassed previous year levels, supported by conducive soil and weather conditions," Hemant Sikka, president of farm equipment sector at M&M, said in a statement.
Bajaj Auto Ltd.’s dispatches to dealerships declined 21% to 2,85,995 units in January as weak exports continued to drag the company’s overall tally. The fall in sales was steeper than analysts’ estimates, which expected it to decline 14%.
Sales Snapshots (YoY):
Total two-wheeler sales fell 25% to 2,41,107 units.
Domestic sales of two-wheeler rose 4%, exports fell 46%.
Escorts Kubota's dispatches to dealerships rose 16.5% to 6,649 units in January, beating analysts' estimates.
Sales Highlights (YoY):
Domestic sales jumped 22.2% to 6,235 units.
Exports fell 31.5% to 414 units.
The company said retail demand across geographies remained strong.
"Crop prices, both in the wholesale market as well as the minimum support prices, are better than last year, and growth trends are expected to continue during this quarter on the back of positive customer sentiments led by ample finance availability, better Rabi sowing, and an early festive season in the month of March this year," the release said.
Indian automakers are announcing their January sales figures today.
Analysts estimate strong growth in sales across categories, barring the two-wheeler segment, as demand remained robust and the shortage of semiconductors eased in January.
While new launches and healthy orderbooks supported car sales, the transition to BS-VI phase-2 emission norms is likely to cause some disruption in dispatches from dealerships.
