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Growth momentum continues in automobile sector, says Angel

Angel Broking has come out with its report on automobile sector. "The automotive segment continued its growth momentum in the month of September 2014. All the segments except the LCV registered almost double digit growth", says the report.

October 09, 2014 / 17:44 IST
     
     
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    Angel Broking's report on automobile sector

    The automotive segment continued its growth momentum in the month of September 2014. All the segments except the LCV registered almost double digit growth. The passenger segment comprising of two wheelers and passenger vehicles led the pack reporting growth of 25% and 9% respectively. Also the MHCV segment rebounded sharply reporting healthy 22% yoy growth which was the highlight of the month. This is the second consecutive month of growth in MHCV. However, the LCV segment continued downward trend declining 9% yoy and dragged the overall CV segment which declined marginally by 1% yoy. While the MHCV segment is expected to continue its uptrend given the economic revival, LCV sales would improve with a lag in our view (expect LCV recovery only in FY2016).

    The PV segment (comprising of six large players) grew in almost double digits by 9% yoy during the month. This is the fourth consecutive month of double digit growth. Maruti Suzuki and Hyundai India led the growth reporting 10% and 15% yoy growth, respectively, during the month. 2W segment continues uptrend: 2Ws continued their strong run, reporting a healthy growth of 25% yoy. The growth was led by Hero Motocorp, Honda Motorcycles and Scooters India (HMSI) and TVS Motors, all of which posted double-digit growth. Bajaj Auto continued to lag, reporting a single digit growth.

    The CV segment recovered reporting flattish volumes during the month as against double digit decline earlier. MHCV segment rebounded sharply showing strong double digit growth of 21% yoy. MHCV segment has been the clear beneficiary of improving economic scenario and consequent improvement in fleet utilization levels. Further, the drop in the LCV segment has moderated (witnessed 9% decline as compared to double digit drop earlier). Tata Motors underperformed reporting 13% yoy decline indicating market share loss. Ashok Leyland and Eicher Motors grew 27% and 20% respectively at the expense of Tata Motors.

    The tractor segment recovered (growth of 8% yoy) on back of revivial in monsoon. The three-wheeler (3W) segment reported a robust growth (16% yoy) driven by new permits in the domestic market and strong traction in exports.

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    first published: Oct 9, 2014 05:44 pm

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