March Auto Sales: Hero MotoCorp’s Sales Surge, Bajaj Auto’s Falls Over February

Suzuki Motorcycles, the two-wheeler subsidiary of Suzuki Motor Corporation, Japan reported a fall of 2.4% in overall sales to 69,942 units in March over last month. The two-wheeler maker had sold a total of 71,662 units last month.

Year-on-Year, the sales rose 72% on a low base last year.

Two-wheeler maker, Bajaj Auto Ltd sold a total of 3,69,448 units in March, that's a fall of 1.5% over last month's sale of 3,75,017 units. Year-on-Year, the sales rose 52% on a low base due to covid disruption and BS6 transition last year.

Sales snapshot (Y-o-Y)

• Total domestic sales nearly doubled to 1,81,393 units in March.
• Total exports rose 32% to 1,48,740 units in March.
• Total commercial vehicle sales rose 24% to 39,315 units in March.

India's second largest two-wheeler maker, Honda Motorcycle and scooter India ltd, saw its total sales rose by 57% to 411,037 units in March, up from 261,699 units a year ago on a low base due to BS6 transition and Covid disruption. Month-on-Month, the total two-wheeler sales however fell 7%.

HMSI's domestic sales rose to 395,037 units from 245,716 units last year.

TVS Motor Company reported a 8.3% increase in total sales to 322,683 units in March, over last month.

The Chennai-based two and three-wheeler maker had sold a total of 297,747 units in February. Year-on-Year, sales rose 123% on a low base due to Covid-19 disruption and BS6 transition last year.

Other Highlights (Y-o-Y)

• The total two-wheeler sales during the month stood at 307,437 units as against 133,988 units last year.
• The domestic two-wheeler sales stood at 202,155 units last month, compared to 34,131 units sold during the same period last year, as per the filings made by the company.
• Total exports stood at to 119,422 units in March, up from 50,197 units last year.
• Motorcycles sales jumped to 157,294 units in March from 66,673 units last year.
• Scooter sales rose nearly three times to 104,513 units in March
• Three-wheeler sale rose 42% to 15,246 units in March, as against 10,751 units last year.

India's largest two-wheeler manufacturer, Hero MotoCorp Ltd. sold 576,957 units in March, the company said in an exchange filing.

Hero MotoCorp's sales rose 72% over the year earlier on a low base due to covid disruption and BS6 transition last year. Month-on-Month sales however rose 14% from 505,467 units in February.

"While the coronavirus pandemic continues to impact the global auto industry, we are witnessing strong preference for the wide range of motorcycles and scooters – including the premium motorcycles Xpulse and Hunk 160R - across markets, especially in Latin America.” Sanjay Bhan, Head – Global Business, Hero MotoCorp said in a statement.

Sales Snapshot (Y-o-Y) -

• Motorcycle sales rose to 524,608 units from 305,932 units last year.
• Scooter sales nearly doubled to 52349 units in March.

Volvo Eicher Commercial Vehicles, the commercial vehicle arm of Eicher Motors Ltd, reported and overall sales of 7,037 units in March, the company said in an exchange filing.

VECV sales jumped 29% over the last month. Year-on-Year, the sales surged five times from 1,499 units last year on a low base.

• Domestic sales rose to 6,054 units from 1,409 units last year.
• Exports rose to 816 units from 67 units last year.

Eicher Motor Ltd. saw sales of Royal Enfield motorcycles fall 5% in March over last month, the automaker said in an exchange filing.

Royal Enfield, the maker of India's cult cruiser motorcycles, saw its sales fell to 66,058 units in March compared to 69,659 units it sold in February. Year-on-Year, sales rose 84% over the last year on a low base.

Sales snapshot (Y-o-Y)

• Sales of models with engine capacity up to 350 cc nearly doubled to 58,471 units.
• Sales of models with capacity over 350cc rose 39% to 7,587 units.
• Exports rose 85% to 5,885 units.

MG Motor India sold 5,528 units in March, its highest ever sales since it started operations in 2019.

MG Motors sales surged three times over the last year on a low base. Month-on-Month, the car sales rose 28%.

Rakesh Sidana Director – Sales, MG Motor India, said they are likely to see disruption in the supply chain due to shortage of semiconductor chips globally, and also due to second wave of Covid.

"We may observe a few NPDs (no production days) in April 2021 as a preventive measure. We assure our customers that we will provide transparent communication to them throughout,” Sidana added.

Ashok Leyland Ltd. reported an overall sales of 17,231 units in March, according to the company’s exchange filings.

The automakers sales jumped 25% over the last month as demand further improved. Year-on-Year, the sales surged nearly eight times on a last base last year.

Domestic Medium and heavy commercial vehicle sales surged six times to 9901 units from 1,445 units last year.

Domestic Light commercial vehicle sales grew to 5,860 units in March from 289 units last year.

Mahindra & Mahindra Ltd.’s passenger vehicles business posted total sales of 16,700 units in March, the company said in a statement.

Passenger vehicle rose 8% over last month as demand for its utility vehicle further improves. Year-On-Year, the company saw its sales going up nearly five times due to low base last year.

• Overall, the auto sales of M&M's automotive division sales jumped 86% over the year earlier to 40,403 units.
• Commercial vehicle segment sales, including electric three wheelers nearly doubled to 21,577 units over the same month last year.

"At Mahindra we are witnessing very good momentum in demand and have a strong pipeline of bookings across our SUV range of Bolero, Scorpio, XUV300, All-New Thar and also the Bolero Pik-up," Veejay Nakra, Chief Executive Officer, Automotive Division, M&M Ltd said in a statement, adding that they expect supply challenges to remain for the next two to three months and then ease out gradually

The Farm Equipment segment saw its sale rose 10% in March over to 30,970 units, compared to the 28,146 units sold last month. Year-on-Year, the sales more than doubled.

Domestic tractor sales rose 122% to 29,817 units over last year, while exports rose 491% to 195 units over last year.

"Impact of lower base coupled with continued positive sentiments driven by healthy reservoir levels, higher MSP and increased liquidity, have led to strong wholesale growth in March.," Hemant Sikka, President - Farm Equipment Sector, Mahindra & Mahindra Ltd. said in a statement, adding that demand is expected to remain strong as Rabi harvesting is progressing well along with the onset of sowing of summer crops in select markets.

Tata Motors Ltd.’s passenger vehicle division sold 29,654 units in March, the highest monthly sales of cars in nine years, the company said in a statement.

Overall Tata Motors’ domestic sales rose 14% in March to 66,609 units from 58,473 units it sold in February. Year-on-year the domestic sales surged six times, on a low base of last year.

• Total domestic commercial vehicle sales rose to 36,955 units in March, compared to 5,336 units last year.
• Commercial vehicle export rose 104% to 40,609 units.

Maruti Suzuki India Ltd. posted total sales of 167,014 units in March led by utility vehicles, compact segment, LCVs and Vans, the country’s largest automaker said in a statement. This is a growth of 1.15% over the 164,469 units sold last month.

The sales however nearly doubled to 83,792 units compared to last year, on a low base due to BS6 transition and covid impact.

• Total domestic sales doubled to 146,203 units in March compared to last year.
• Exports were up 146% to 11,597 units, from 4712 units last year.
• Mini and compact vehicle segment rose 103% to 82,201 units compared to last year.
• Utility vehicle sales more doubled to 26,174 units in March compared to last year.

Escorts Ltd.’s agri machinery segment sold 12,337 tractors in March, the highest ever recorded in the month, the company said in a statement to the exchanges on Thursday.

The automaker's tractor sales jumped 124.4% over the year earlier on a low base. Month-on-month, tractor sales rose 10%.

In domestic market it sold 11,739 tractor, up 124% last year, while in exports sales rose 181% over last year to 607 units.

The company said in the statement said that it expects the demand to continue to remain strong led by higher rabi output, favorable crop prices, and initial positive forecast of 2021 monsoon season. The rising inflation however continues to be a worry, it added in the statement.

Factory-gate shipments of almost all the automakers for March are expected to rise in the range of 3-20% over the previous month, data compiled from research reports of Motilal Oswal, Emkay Global, Dolat Capital and Prabhudas Lilladher showed.

Volumes are, however, not comparable year-on-year due to the low base on account of Covid-19 lockdown last year, and transition to stricter Bharat Stage VI norms.

Passenger vehicle sales to remain the strongest, Deep Shah and Amber Shukla, analysts at Prabhudas Lilladher, said in a note. They expect a healthy sentiment as volumes are expected to grow, led by demand from north, central and south India. “Retail volumes have surpassed pre-Covid level as both rural and urban demand grew 30-35% year-on-year and 10-15% year-on-year, respectively,” the analyst said.

Commercial vehicle volumes are expected to improve month-on-month due to improving freight availability and higher freight rates that is aiding the sentiments of the transporters.

The buoyancy in demand sentiment in commercial vehicles is led by 55-60% higher inquiries from construction activities due to increased demand, gradual pickup in tractor-trailer segment and improved demand for haulage, Shah and Shukla wrote.

Two-wheeler demand, however, is expected to remain weak as the cost of ownership rose because of fuel inflation. This caused the inventory levels to rise to five to seven weeks from four to six weeks in the previous month, according to Prabhudas Lilladher.

Data compiled from four research reports showed that two-wheeler firms are expected to grow 3-6% over previous month in March.