For October 2012, automakers posted a strong growth led by the onset of the festival season. While two-wheeler, passenger car (PC) and tractor volumes staged a smart recovery on the back of the festival demand; momentum in the light commercial vehicle (LCV) and utility vehicle (UV) segments was maintained. The medium and heavy commercial vehicle (MHCV) segment however, continues to struggle as weakness in demand persisted during the month.
“We remain optimistic on the festive season demand and expect strong auto sales for November 2012,” said Angel Broking.
Tata Motors (TTMT) reported subdued numbers for October as total volumes registered a modest growth of 5.5% yoy; however, volumes declined 5.3% mom despite the festival cheer. The weak performance can be attributed to weakness in the passenger car segment which declined 23% yoy led by a 38% yoy decline in Indica sales.
Ashok Leyland (AL) reported mixed numbers in October as CV sales ex-Dost posted a steep decline of 12.5% yoy led by continued weakness in the MHCV segment.
Maruti Suzuki (MSIL) reported an in-line growth of 9.7% mom in October driven by strong growth in the compact (Swift), super compact (Dzire) and export (A Star) volumes due to ramp up in production at the Manesar plant. The sales in the mini segment registered a 7.9% mom growth primarily driven by the newly launched Alto 800.
Mahindra & Mahindra (MM) maintained its strong volume momentum in October aided by continued traction in the automotive segment driven by Quanto as well as ramp-up in XUV5OO volumes. The four-wheeler pick-up segment too registered a strong growth of 26.4% yoy.
Bajaj Auto (BJAUT) reported a sequential growth of 14.5% in October driven by festival demand, new launches - Pulsar 200NS and Discover 125ST and gradual revival in exports.
HMCL registered better-than-expected volume growth of 3.3% yoy in October driven by festival demand and inventory correction.
TVS Motor (TVSL) posted an in-line volume growth of 3.3% yoy in October driven by a strong 22.5% yoy growth in moped sales. On a sequential basis, motorcycle and scooter volumes grew by 13.9% and 9.8% respectively, benefitting from the festival demand.
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