– A disappointing set of February sales numbers through auto majors across all segments
– New axle load norms, tight liquidity, and non-availability of finance weigh on industrial vehicle producers
– New product launches helping passenger car and two-wheeler sales
Challenging instances keep for automobile majors, with their income numbers for February declining. The decline is due to subdued client demand sentiment as a result of slowing industrial output, tight liquidity, non-availability of retail finance, higher hobby charge and mild financial pastime beforehand of preferred elections scheduled for April-May.
Commercial automobile (CV) segment numbers had been blended for players on this area. The section maintains to stand challenges because of the impact of recent axle load norms, coupled with liquidity crunch and non-availability of retail finance. Tractor segment becomes vulnerable in February at the back of a better base of last 12 months and subdued farm sentiment.
Three-wheeler (3W) income was mixed because of a completely high base of last year. Two-wheeler volumes had also been mixed for players on this space. Passenger vehicle (PV) income keeps disappointing because of the higher value of ownership, the high base of closing yr and negative macro factors.
Commercial vehicle – is still under strain
The negative effect of new axle load norms and macro challenges led through liquidity troubles, financing troubles, rising hobby rates and a slowdown in a financial interest, have dampened purchaser demand sentiment for CVs. The long-term outlook, however, maintains to remain fine because of cognizance on construction and infrastructure and growth in mining activity.
Company-smart, Tata Motors registered a 9 percentage yr-on-yr (YoY) decline in CV volume, led by 17.3 percent and 0.7 percentage fall within the medium and heavy industrial car (M&HCV) and mild commercial vehicle (LCV) segments. Volvo Eicher Commercial Vehicles (VECV) additionally witnessed a 6.7 percent drop. Ashok Leyland and Mahindra & Mahindra (M&M) posted a flat increase in its month-to-month volumes due to decline in M&HCV phase volumes but became partly offset by using upward thrust in LCV volumes.
Car phase continues to show a weak point for the 8 consecutive months. Increase inside the total price possession led by using growing interest charge, and obligatory lengthy-term coverage have dampened purchaser sentiment. Companies in this area have published a muted/decline in PV volume for February, though new product launches helped.
Market chief, Maruti, posted a three.3 percent decline in monthly volumes, while Tata Motors’ grew a percentage. The management of Tata Motors is looking forward to sturdy months beforehand at the back of a launch of its new SUV, Tata Harrier, in January. M&M posted a growth of 16.6 percentage in its month-to-month extent, pushed by its newly released XUV300 model.
Two-wheeler (2W) section: Bajaj Auto continues to do well
In the 2-wheeler area, Bajaj Auto led the % with an increase of 6.3 percentage in February, driven using aggressive pricing actions taken by way of the management in its access-level section. The effect of that is subsiding on market chief Hero MotoCorp, which witnessed a percent decline in its monthly sales. Eicher Motors continues to supply disappointing numbers, posting a decline of 14.3 percent. TVS Motor Company announced a 12 months-on-yr boom of percentage on the returned of increase accruing from bikes (eight.2 percentage).
Three-wheeler (3W): Mixed displaying
The typical 3W market published combined numbers in February. TVS published a totally sturdy increase (forty-one .2 percentage), and M&M delivered 10 percent growth. Bajaj Auto, the chief inside the area, noticed an 8.7 percent decline because of the excessive base of the last yr.