– 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 due to 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 in this area. The section maintains challenges because of the impact of recent axle load norms, liquidity crunch, and the non-availability of retail finance.
In February, the tractor segment becomes vulnerable at the back of a better base of the 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 financial interest have dampened purchaser demand sentiment for CVs. However, the long-term outlook remains fine because of the cognizance of construction and infrastructure and the 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 a decline in M&HCV phase volumes but became partly offset by using upward thrust in LCV volumes.
The car phase continues to show a weak point for the 8 consecutive months. An increase in total price possession led by growing interest charges and obligatory lengthy-term coverage have dampened purchaser sentiment. This area has 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 percent in its month-to-month extent, pushed by its newly released XUV300 model.
Two-wheeler (2W) section: Bajaj Auto continues to do well.
TVS Motor Company announced a 12 months-on-yr boom of percentage on the return of increase accruing from bikes (eight.2 percentage). 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.
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.