Nirmal Bang has come out with its report on automobile sales.
Automobile sales in May 2012 continued to remain subdued as the petrol price hike played spoilsport. Car sales of key players like Maruti Suzuki , Tata Motors , General Motors India and Ford India posted YoY drop in sales. Two-wheeler companies displayed better performance, with most of them posting a MoM growth in sales, largely driven by the launch of new vehicles and demand uptick due to the marriage season in North India. In the commercial vehicle segment, medium and heavy commercial vehicle (MHCV) sales remained weak, with Tata Motors reporting a 23.1% YoY drop in MHCV sales, while light commercial vehicle sales continued their doubledigit growth momentum. With the recent steep petrol price hike, car sales are expected to remain under pressure in the near term, but we expect them to recover in 2HFY12.
Maruti Suzuki reported a 5.0% YoY fall in sales, largely on account of a sharp 29.0% drop in mini segment sales (Maruti 800, Alto, A Star and Wagon R), which are primarily petrol-run cars. However, robust demand for diesel variants led to strong sales of Dzire, Swift and Ertiga sales. Exports plunged 10.9% YoY.
Hyundai Motors India surprised positively with a 2.9% YoY rise in domestic sales led by higher A2 segment sales.
Tata Motors reported a 3.6% YoY growth in sales led by higher Nano and LCV sales. Nano sales grew 30.6% YoY, while LCV sales rose 19.3% YoY. However, overall MHCV sales declined 23.1% YoY.
Ford India as well as GM India witnessed a steep 14.7% and 27.0% YoY drop in sales, respectively, due to weak demand environment post excise duty hike and petrol price hike.
Honda SIEL reported growth on YoY as well as MoM basis on the back of low base and higher sales of recently launched Brio model, which registered sales of 4,512 units.
Sales of Toyota-Kirloskar and Nissan India grew 97.6% and 107.5%, respectively, on account of low base and sustained demand for its vehicles launched recently.
Mahindra & Mahindra (M&M) continued its strong volume growth momentum, outperforming industry growth, with a strong 28.2% YoY growth in sales driven by UVs and LCVs.
M&M’s tractor segment reported positive sales growth after four consecutive months of a YoY drop in sales. The tractor segment’s sales grew 0.7% YoY and 13.2% MoM.
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