Tag: February auto sales

Maruti Suzuki February auto sales declines marginally

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Maruti Suzuki India, the largest passenger car manufacturer in the country, on Tuesday, reported a marginal drop in total sales at 1,64,056 units in February 2022. Analysts in the CNBC-TV18 poll estimated the sales at 1.67 lakh units.

The total sales include domestic sales of 137,607 units as against 1.52 lakh units in the same month last year. Sales to other OEM stood at 2,428 units.

The company also posted its highest-ever monthly exports of 24,021 units as against 11,486 units in the corresponding month last year.

Sales of mini cars, comprising Alto and S-Presso, fell 17.81 percent to 19,691 units as compared to 23,959 in the same month last year. Similarly, sales in the compact segment, including models such as Swift, Celerio, Ignis, Baleno and Dzire, slumped 3.38 percent to 77,795 units as against 80,517 cars in February 2021.

Also Read | MG Motor India records 5% growth in retail sales in February 2022

Sales of mid-sized sedan Ciaz increased to 1,912 units as compared to 1,510 units in February 2021. Utility vehicle sales, including Vitara Brezza, S-Cross and Ertiga, declined to 25,360 units as compared to 26,884 vehicles in the year-ago month, the company said.

The auto manufacturer faced a minor impact on the production of domestic vehicles due to a shortage of electronic components. However, the company said it took all possible measures to minimise the impact.

Maruti Suzuki’s share price ended 0.6 percent lower on Monday at the close, quoting at Rs 8,304.90 apiece.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Tata Motors Feb sales rise 51% on strong domestic demand; reports highest-ever PV sales in 9 years

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Automobile major Tata Motors reported a robust 51 percent sales growth in February 2021 led by strong domestic sales for its passenger vehicle (PV) segment.

The company’s total sales in the domestic and international market during February 2021 increased 51 percent to 61,365 vehicles as compared to 40,619 units during February 2020. Total domestic sales during the month rose 54 percent to 58,473 units from 38,002 units

Tata Motors’ passenger vehicle sales jumped 119 percent in February to 27,225 units from 12,430 units, compared in the same period.

February 2021 sales have been the highest ever sales for Tata Motors PV in nearly 9 years, the company said in a regulatory filing.

Total Commercial Vehicle (CV) sales also improved during the period under review on the back of strong domestic demand. CV sales rose 21 percent to 33,966 units from 28,071 units.

Domestic CV sales registered a growth of 22 percent at 31,248 units, while CV exports increased 8 percent to 2,718 units.

At 2:15 pm, the shares of Tata Motors were trading 1.28 percent higher at Rs 327.15 apiece on the BSE.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

M&M February auto sales fall 11% but tractor sales up 25%

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Auto major Mahindra & Mahindra’s (M&M) total auto sales for the month of February 2021 fell 11.3 percent to 28,777 vehicles as compared to 32,476 vehicles in February 2020.

In the Utility Vehicles segment, Mahindra sold 15,380 vehicles during the month, compared to 10,675 vehicles in February 2020, registering a growth of 44 percent. The Passenger Vehicles segment (which includes UVs, Cars and Vans) sold 15,391 vehicles, a growth of 41 percent over the same period last year.

“Demand continues to remain buoyant for our range of SUVs and Pick-ups and we have a robust order pipeline,” said Veejay Nakra, Chief Executive Officer, Automotive Division, M&M.

However, the problems oversupply of semiconductors is likely to continue for another 3 to 4 months, Nakra added.

“Going forward, we will continue to monitor the situation and closely work with our suppliers to minimise this supply risk,” he said.

Exports for the month of February 2021 were at 1,827 vehicles.

Mahindra & Mahindra’s total tractor sales during the month registered a growth of 25 percent to 28,146 units, as against 22,561 units, YoY.

Domestic tractor sales rose 24 percent to 27,170 units from 21,877 units, while exports grew 43 percent to 976 units from 684 units, YoY.

“Tractor demand continues to be robust with Rabi sowing at an all-time high, supported by healthy reservoir levels and higher liquidity with farmers, on account of timely and robust procurement of Kharif crops,” Hemant Sikka, President – Farm Equipment Sector, Mahindra & Mahindra said.

The outlook for the industry continues to be positive given the all-time high estimates of Rabi production and strong rural cash flows, he added.

At 1:20 pm, the shares of Mahindra & Mahindra were trading 2.50 percent higher at Rs 825.00 apiece on the BSE.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Ashok Leyland Feb sales rises 19% YoY to 13,703 units

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Commercial vehicle manufacturer Ashok Leyland’s total sales in the month of February 2021 rose 19 percent to 13,703 units as compared to 11,475 units in the same month last year. Sales were higher than the CNBC-TV18 poll of 13,500 units.

The company’s total domestic sales increased 20 percent to 12,776 units from 10,612 units, YoY.

Total truck sales during the month jumped 50 percent to 7,336 units from 4,894 units, while the company sold only 466 buses in February 2021, 81 percent lower than 2,474 buses sold in February 2020.

Sales of light commercial vehicles (LCV) rose 44 percent to 5,901 units from 4,107 units, YoY.

At 11:50 am, the shares of Ashok Leyland were trading 0.58 percent higher at Rs 129.65 apiece on the BSE.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Maruti Suzuki total Feb sales rise 11.8% to 1.64 lakh units

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Maruti Suzuki India reported an 11.8 percent rise in total sales for the month of February 2021 at 1.64 lakh units led by its compact and utility segment cars. The company’s sales were marginally lower than CNBC-TV18’s estimates of 1.66 lakh units.

The company’s total sales in February 2021 increased 11.8 percent to 164,469 units from 147,110 units in February 2020. Total domestic sales rose 11.8 percent to 152,983 units from 136,849 units, while total exports increased 11.9 percent to 11,486 vehicles from 10,261 vehicles, YoY.

Total sales include 5,500 units sold to other Original Equipment Manufacturers (OEM), which rose 103.8 percent from 2,699, YoY.

Maruti Suzuki’s total passenger vehicle sales rose 6.1 percent to 105,986 units as against 99,871 units, YoY.

The company sold 2,722 units of its light commercial vehicle (LCV) Super Carry in February 2021 as compared to just 448 units in the same month last year.

Jyoti Roy, DVP- Equity Strategist, Angel Broking said that the company’s overall sales numbers were encouraging and point to continued improvement in demand in the PV segment led by the compact segment.

“Post the January sales numbers we continue to maintain our positive stance on Maruti which is expected to be the biggest beneficiary of recovery in demand for entry-level PV,” Roy said.

At 10:40 am, the shares of Maruti Suzuki were trading 1.69 percent higher at Rs 6,988.70 apiece on the BSE as compared to a 1.90 percent gain on the benchmark Sensex.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Bajaj Auto February sales rise 6% to 3.75 lakh units, miss estimates

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Bajaj Auto’s total vehicle sales in February 2021 rose 6 percent to 375,017 units from 354,913 units in the same month of last year. The company’s sales were lower than CNBC-TV18’s estimate of 4.05 lakh units.

Domestic sales during the month fell 2 percent to 164,811 units from 168,747 units in February 2020. Exports rose 13 percent to 210,206 units from 186,166 units, YoY.

The company’s total two-wheeler sales during the month were up 7 percent at 3.32 lakh units as compared to 3.10 lakh units, YoY. The segment’s domestic sales increased 1 percent to 148,934 units from 146,876 units, while exports rose by 12 percent to 183,629 units from 163,346 units, YoY.

Total three-wheeler sales declined 5 percent to 42,454 units from 44,691 units, YoY.

Domestic sales of three-wheelers plunged 27 percent to 15,877 units from 21,871 units, while exports increased 16 percent to 26,577 units from 22,820 units.

At 9:40 am, the shares of Bajaj Auto were trading 0.56 percent higher at Rs 3,821.85 apiece on the BSE as compared to a 1.45 percent gain on the benchmark Sensex.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Auto sales expected to grow YoY in Feb across segments, excluding 3-wheelers

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Automobiles wholesales are expected to see year-on-year growth in the month of February 2021 across all segments, excluding three-wheelers, driven by strong demand and rising exports.

The wholesale volumes are estimated to grow at 13 percent for two-wheelers, largely driven by exports, and 20 percent for passenger vehicles (PVs) due to supply-side issues.

Meanwhile, commercial vehicle (CV) volumes are likely to grow by 37 percent (Light commercial vehicle (LCV) growth of 58 percent, medium and heavy commercial vehicles (M&HCVs) by 17 percent). Wholesale volumes for tractors are expected to grow by 27 percent YoY on robust demand, according to Motilal Oswal Financial Services.

“Demand momentum in January 2021 sustained in February 2021 across segments. Discounts were lower as February 2020 had BS-VI transition-related discounts. Inventory is much lower than normal for PVs and tractors, leaving headroom to fill inventory in the coming months. Wholesales are expected to grow for replenishing abnormally low inventory for PVs and Tractors,” the brokerage said in a report.

The demand for entry-level two-wheelers models remained subdued, whereas the premium segment saw some recovery. Analysts expect the pain to continue till mid-April. Meanwhile, OEMs increased discounts for entry-level models to push sales.

The strong demand momentum continued in PV segment. However, retail sales were restricted by supply-side challenges, according to the report.

Amid CV segment, the demand for M&HCVs from the infrastructure segment remained strong. The cargo segment is also recovering, albeit slower than expected. Discounts have fallen by 2-3 percent to 13-15 percent due to strong demand and a shortage of certain models (in the high tonnage segment).

Meanwhile, tractor demand has sustained due to good rabi sowing and preference for farm mechanization. Both Mahidnra & Mahindra and Escorts are operating at full capacity.

“Sales remains skewed towards higher HP tractors due to higher demand from the agriculture segment and low base. Commercial use of tractors is also picking up. Dealers are holding lower inventory (10-30 days). We expect tractor volumes to grow by 30 percent/18 percent YoY for MM/ESC due to higher demand,” Motilal Oswal said.

Current valuations are largely factoring in sustained recovery, leaving a limited margin of safety for any negative surprises. Motilal Oswal Financial Services prefers companies with higher visibility in terms of a demand recovery, a strong competitive positioning, margin drivers, and balance sheet strength.

Maruti Suzuki India and Mahindra & Mahindra are the brokerage’s top OEM picks. Among auto component stocks, it prefers Endurance Technologies and Motherson Sumi Systems.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Expect BS-VI transition costs to hit demand; outlook for April-June quarter weak, says Bajaj Auto

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Combination of a weak economic backdrop combined with added costs due to transition to BS-VI from BS-IV makes the outlook for April-June quarter quite weak for domestic business, is the word coming in from Rakesh Sharma, ED, Bajaj Auto.

However, exports without Egypt have seen strong single digit growth in the commercial vehicle (CV) business, he said.

In terms of demand, he said they expect a decline of 10-15 percent between April to August  due to BS-VI transition costs but are hopeful that festivities would reverse the down cycle. However, they do not think second half would be able to compensate for the double digit decline of the first half, said Sharma.

Below is the transcript of the interview

Q: The last time we spoke with you, you said that this whole April to June period could be very difficult period for the industry. Up until now, we have not seen any green shoots at all. How do you see the next 2 months shape up?

A: The underlying economic situation remains as it was before, which is a high single digit decline in the retail industry and on top of it there are issues of transition from BS-IV to BS-VI, which will add costs April onwards. So, the combination of a weak economic backdrop combined with added costs makes the outlook for April-June quarter quite weak for domestic business.

Q: Since you are globally exposed – are you beginning to see any resistance since global trade itself is shrinking?

A: Exports have had an outstanding run. We had the highest ever quarter in Q3, we had the highest ever sales in January and we have had strong growth of 15 percent in February. There is an Egypt issue, which is going to be finally brought to rest in April because last year it was in April when Egypt went down. March was the last export we did there. So, without Egypt there has been good strong single digit growth in the commercial vehicle (CV) business.

However, we are watchful about the impact of coronavirus. As yet there is no impact in our markets because of that. However, some disruption in Chinese supply chains of motorcycles will definitely be an area of opportunity for a company like us, who commands 35 percent market share in Africa. Therefore, I expect the export performance to continue January and February the way it has been doing in Q3.

Q: Your peers TVS Motor as well as Hero MotoCorp have put out a release saying that because of coronavirus supply disruption production could get hit by 10 percent due to auto component supply disruption. Won’t you face that pressure?

A: Our impact was less than 5 percent and we have taken steps of airlifting critical components although slightly expensive. Of course, our electric scooter had some sourcing from Wuhan itself, so that has got affected but other than that it’s a manageable situation for us. If the trajectory of supply chain improvement continues as it is occurring in China, then we actually don’t see a disruption of production in April-May also.

Q: How is the BS-IV and BS-VI evolving? Have you had to write-off anything?

A: Not at all. The BS-IV stocks are under control. In fact, for motorcycles, there is about 20 days of sale taking February as sale and in others like commercial vehicles they are 11-12 days of sales. This is an odd period where we are running down the BS-IV and not yet being able to fully ramp-up the BS-VI. That will start to occur in March.

Q: What would be the price increase on account of BS-VI and what is your outlook for FY21 in terms of volume growth?

A: The price increase is between Rs 6,000 and Rs 10,000 depending on the model. The 150cc plus model, where we have used fuel injection system can go up to Rs 10,000. So the cost increase is between 6  and 10 percent.

When there was BS-III to BS-IV transition, the economic backdrop was that of growth. The major difference this time is that the economic backdrop is not very supportive and on top of that when we are going to see these kind of price increases, then definitely it’s going to impact demand. We feel it will be 10-15 percent decline in April to August period and hopefully, when festivities kick in, they will serve as a trigger to reverse the down cycle.

However, I don’t think the second half will be able to compensate for the double-digit decline of the first half. We might just end up even-stevens or slightly negative for the industry in the whole year.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Eicher Motors shares gain 4% as Royal Enfield February sales see an uptick

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Eicher Motors rose over four percent after the sales of the company’s Royal Enfield unit registered a growth in the month of February. The shares gained 4.71 percent to touch intraday high of Rs 17,389 on the BSE.

The company sold total of 63,536 units of Royal Enfield motorcycles in February 2020, up 1 percent from 62,630 units sold in the same month last year.

The motorcycles with engine capacity exceeding 350cc reported sales growth of 11 percent YoY at 6,244 units.

However, exports of the company fell 8 percent to 2,348 units as compared to 2,564 units, in the same period.

The company said that it faced minimal impact coronavirus in production of motorcycles during the month of February.

“Some of the company’s supply partners have dependencies on the manufacturers in China for sourcing of certain specific components. The company is making all efforts for maintaining continued supplies of these components,” Eicher Motors said in a regulatory filing.

On BS-VI transition, the company said that it has already moved a large part of its product portfolio to BS-VI and is seeing a good response to the BS-VI motorcycles.

The production of BS-VI motorcycles is ramping up as BS-VI supply chain is gradually stabilizing, it added.

At 11:45 am, the stock quoted Rs 17,338.25 apiece, up 4.41 percent on the BSE.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Escorts February tractor sales rise 18%, shares surge

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Escorts Ltd rallied over 10 percent on Monday after the company registered a growth in total tractor sales in the month of February 2020.

The Escorts led Agri Machinery Segment (EAM) reported 18.8 percent rise in total tractor sales in February at 8,601 units as against 7,240 units sold in February 2019.

Domestic tractor sales during the month at 8,049 tractors registered a growth of 16.3 percent as compared to 6,918 tractors sold in February 2019.

Export for the month of February 2020 also rose by 71.4 percent to at 552 units versus 322 units, YoY.

The scrip touched intraday high of Rs 863.75 after surging 10.72 percent on the BSE and at 11 am, the stock was trading 9.90 percent higher at Rs 857.30.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow