Eastern Financiers reviews Jun'12 auto sales

Eastern Financiers has come out with its report on auto space.

Automobile companies persisted to report murky set of numerals for yet another month of June 2012 in the midst of weedy consumer sentiment led by high interest cost, trembling GDP growth that parked at its slowest pace in nine years, escalation in the price of fuel and policy uncertainty over diesel cars among others. The lingering apprehensions over the sector may have deterred customers from buying this month; however the sales of diesel models endured to occupy the limelight.

Bajaj Auto endured to report muted set of sales for the month of June 2012 led by hike in import duty by the Sri Lankan government at the beginning of the April 2012- the nation to which Bajaj Auto on a monthly average exports 10000 units of Motorcycles and three wheelers, that took its toll on the monthly sales of the company. Shipments to the island nation has been hit by the sharp trek in import duty by the Sri Lankan government. Total sales of the company for the month of June 2012 slinked by 5.86% after marking moderate growth of 1.85% in May 2012. The company sold 345162 units in June 2012 against 366657 units being sold in June last year. The company however expects its exports to Sri Lanka shall pick up from July.

Sales of the country’s largest four-wheeler domestic passenger vehicles manufacturer- Maruti Suzuki bucked the industry trend marking beefy growth of 20.30% during June 2012 which shall be primarily attributed to the phenomenal success of the Ertiga MUV launched in April 2012 and the Swift hatchback & DZire launched during the last financial year. The diesel models of these cars in particular have a waiting list of up to six months. However, the sharp rise in petrol prices last month has hurt sales of passenger cars in the mini & mid size segment, which includes A-Star, Wagon R, Alto, M800 and SX4. Except for the diesel variants of swift and Dzire along with the newly launched Ertiga MUV that witnessed escalated sales, rest all the other segments continued to post murky performance during the month. Nevertheless, the total sales of the company during the month climbed by 20.30% at 96597 units equated to 80298 units being sold in June last fiscal.

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Marking the eleventh consecutive month of five lakh plus units of sales, Hero Motocorp reported its best ever quarterly sales in any single quarter with sales of 1642292 units. The company that persisted to count on its record sales for two consecutive preceding months reported sales of five lakh plus units at 534091 during June 2012 compared to 512244 units being sold in June last year, enlisting gains of 4.26%. The country’s largest two wheeler manufacturer however, reflected de-growth of 4.05% compared to May 2012 that witnessed record sales of 556644 units.

Accredited by “Dost” that is being manufactured in association with Nissan Motor Company of Japan, sales of the second largest commercial vehicle maker- Ashok Leyland impelled by a beefy 27.91% with sales of 10244 units during June 2012 against 8009 units sold in June last fiscal after surging 51.06% during May 2012. Total sales includes 2725 units of Dost, excluding which the Hinduja Group company's sales during June slipped by 6.12% from a year ago to 7519 units. Dost sales for May 2012 stood at 2305 units marking gains of 18.22% for June 2012 with sales of 2725 units.

Amidst restrained outlook of the economy and the automobile sector, India’s leading sports utility vehicle maker, Mahindra & Mahindra endured to report stout performance for yet another month embarking on growth of 16.13% during the month of June 2012 and marked growth of beefy 23.56% in the first quarter of FY13 with sales of 126029 units being sold in the three months period of Apr-June FY13 equated to 101997 units in the same period last fiscal. The company sold 41322 units during the month of June this fiscal against 35584 units in June 2011.

India’s largest commercial vehicle manufacturer, Tata Motors reported drabbing performance for June 2012 with trip in total sales of 3.04% after marking moderate growth in the preceding month of 3.61%. Total sales of the company parked at 64341 units against 66360 units being sold in June last year. Compared to the preceding month of May 2012, sales was almost flat that witnessed sales of 63347 units enlisting meager drip of 0.01%.

TVS Motors Company persisted to report trimmed set of sales for June 2012 that slithered 7.54% after marking de-growth of 5.33% during May 2012. The company witnessed dismal sales of 168693 units this June against sales of 182456 units in June 2011 led by bleak performance across all its segments. Sales when compared to the preceding month of May 2012, slipped down 4.16% with 176012 units being sold during the month.

Institutional holding more than 40% in Indian cos

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