Motorcyclists ride past a Hyundai Motor Co. showroom in the Ambattur district of Chennai. (Photographer: Dhiraj Singh/Bloomberg)
6 years ago
Oct 22, 2019
India's vehicle makers are set to report the monthly data on how many vehicles they sold in September. The big names include Tata Motors, Maruti Suzuki, Mahindar & Mahindra, Ashok Leyland, Hero MotoCorp, Bajaj Auto, TVS Motor and Eicher Motor. This may be the month where the industry finally sees sales rise from the lowest more than two decades, spurred by heavy discounting and a boost in sentiment from the Finance ministry's surprise cut in corporate tax rates.
The sales of Royal Enfield motorbike, which is made by Eicher Motors Ltd. fell 17 percent to 59,500 units in September from 71,662 units in the same period a year ago.
Sales of models with engine capacity up to 350cc fell 23 percent to 52,017 units.
Sales of models with engine capacity over 350cc rose 83 percent to 7,483 units.
Tata Motors Ltd. on Tuesday reported a 50 percent decline in its domestic sales to 32,376 units in September 2019. It had sold 64,598 units in the same period last year.
Key Sales Highlights (YoY)
Sales in the passenger vehicles segment were down 56 percent at 8,097 units last month as against 18,429 in September 2018.
Sales in the commercial vehicle segment fell 45.4 percent to 28,079 units. It had declined 45 percent at 21,824 units in August.
Towards the end of the month, there was an encouraging response in terms of customer footfalls. However, the industry continued to decline in September, said Mayank Pareek, President, Passenger Vehicles Business Unit, Tata Motors.
TVS Motor Company Ltd.'s sales fell 25.5 percent to 3,15,912 units in September 2019 as against sales of 4,23,939 units in the month of September 2018. The company's August sales had declined over 15 percent to 2.9 lakh units, according to its exchange notification.
Key Sales Highlights (YoY)
Total two-wheeler registered sales dropped 26.72 percent to 300,909 units in September 2019 as against sales of 4,10,657 units in the same period last year.
Three-wheeler sales of the company grew by 13 percent to 15,003 units registered in the period.
Total exports grew by 17 percent to 71,569 units in September.
Two-wheeler exports grew by 17 percent to 57,746 units.
Eicher Motors Ltd.'s total sales under the VECV business fell 43.2 percent to 3,784 units in September, according to the exchange filing. That's higher than the 3,538 units sold in August.
Total domestic sales fell 44.8 percent to 3,140 units while total exports fell 41 percent to 533 units.
Escorts Ltd.sold 10,855 tractors registering a growth of 2.2 percent against those sold in September 2018, according to its exchange filing. That’s also higher than the 40,35 tractors sold in August.
Domestic tractor sales rose 1.2 percent to 10,521 units while exports grew 51 percent to 334 units.
The company’s shares rose 2.2 percent to 594 apiece after the announcement on the exchanges.
Its tractor sales fell 2 percent year-on-year to 37,011 units.
Domestic tractor sales were flat to 36,046 units.
Tractor exports fell 41 percent to 965 units.
“We are positive that this festive season, with the onset of Navratra, will augur well for us and the automotive industry. This, in addition to factors such as the good monsoon and recently announced positive government initiatives should help revive the industry in the short term,” Veejay Ram Nakra, chief of sales and marketing of automotive division at M&M said in a statement.
Shares of Atul Auto rose as much as 9.6 percent, the most in nearly two weeks, to Rs 248.
The company sold 5,306 units in September, a rise of 3.92 percent from the year-ago month, the Gujarat-based automaker said in a stock exchange filing. It’s total sales from April to September dropped almost 5 percent year-on-year to 22,773 units.
Ashok Leyland Ltd.’s sales fell 55 percent to 8,780 units in September, according to its stock exchange filing. In August, the company’s sales had taken a 50 percent fall year-on-year to 8,296 units.
Key Sales Highlights (YoY)
Domestic medium and heavy commercial truck sales fell 74 percent to 3,131 units.
Domestic medium and heavy commercial bus sales fell 26 percent to 904 units.
Total domestic medium and heavy commercial vehicle sales declined 69 percent to 4,039 units.
MG Motor India on Tuesday reported retail sales of 2,608 units in September. That’s higher than the 2,018 units sold in the previous month.
The company said it has re-opened bookings for Hector SUV on back of its plans to ramp up production.
With increased supplies from global and local component suppliers, the company is starting second shift operations from November and would be adding around 500 people to its direct payroll to support the second shift operations, MG Motor said in a statement.
India’s vehicle makers are set to report the monthly data on how many vehicles they sold in September.
This may be the month where the industry finally sees sales rise from the lowest more than two decades, spurred by heavy discounting and a boost in sentiment from the Finance ministry’s surprise cut in corporate tax rates.
A BloombergQuint Survey of auto dealers showed that sales of cars and two wheelers rose marginally last month.
“There were a lot of customers who were awaiting clarity on the GST Council’s decision (on reducing the indirect tax on automobiles) at the start of the month who are now making final purchase decisions,” Vinkesh Gulati, director, United Automobiles—a dealer for Mahindra and Mahindra Ltd.—told BloombergQuint. “OEMs (original equipment makers) have been giving a lot of attractive offers and discounts to customers and over the last few days and there has been a significant bump in queries as well as showroom footfalls.”
