Domestic auto volumes grew 5% YoY, but declined 6% MoM to 1,523,692 units in Feb'14, mainly due to 9.7% YoY growth (down 7.1% MoM) recorded by domestic two wheeler segment, despite YoY decline witnessed across all other segments in the month. Traditionally, industry witnesses sequential fall in volumes in the month of February, due to lower number of days, according to Karvy Stock Broking.

Passing on the benefits of cut in excise duty by majority of the players couldn't help much to the industry volumes and demand remained subdued during the month. Higher cut of 6% in large SUVs also could not fuel the volumes of the segments as it declined 9% YoY and 5.3% MoM.

''LCVs declined sharply by 32.5% YoY and 7.6% MoM, while three wheelers also fell 14% YoY (up 5.1% MoM), mainly due to fall in passenger carrier (auto rickshaw) segment, which declined 23% YoY.''

''Domestic PV volumes fell 4% YoY & 1% MoM to 217,749 units in Feb'14, due to decline of 33% YoY in MPVs (Vans), while PC volumes rose just 1.4% YoY in Feb'14. Declining price differential between petrol and Diesel resulted in fall in demand for diesel variants, moreover, rural segment has begun witnessing slowdown this time,'' it said.

''Domestic two-wheeler segment grew 9.7% YoY (down 7.1% MoM) to 1.22 million units, as Scooter segment reported strong growth of 28.2% YoY and motorcycles rose 5.4% YoY in the month. Moped sales declined 5.8% YoY & 5.2% MoM to 64,748 units in the month.''

''Overall exports grew 7.3% YoY & 9.2% MoM to 270,110 units in the month. We expect some pick up in volume at the end of Q4FY14. We expect strong recovery in FY15E,'' it opined.

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.