Bajaj Auto Records Highest Ever Monthly Sales In October

Bajaj Auto Ltd. reported its highest ever monthly sales this October on strong motorcycle sales.

The company sold 5,06,699 vehicles during the month, 32 percent higher compared same period last year.

Overall domestic sales reach a record of 3,19,942 vehicles, driven by a 33 percent jump in motorcycle sales in India as the festive season kicked in.

Exports also jumped 38 percent year-on-year to 1,86,757. This can be attributed to a 68 percent jump in the export of commercial vehicles and a 33 percent rise in two-wheeler exports.

Overall motorcycle sales rose 33 percent to 4,32,985 units while commercial vehicle sales rose 30 percent to 73,714 units.

Hero Motocorp Ltd.’s sales rose 16.4 percent over last year to 7.34 lakh units. This was the second straight month of 7-lakh plus sales for Hero.

“Compared to the previous year, retail off-take across the country during the initial few weeks of the festive season have been moderate, primarily on account of the significant increase in Insurance cost, followed by the associated confusion over the coverage amount and period in the matter of two-wheeler insurance,” it said in a media statement. “We hope to see a positive turnaround in the sentiments and retail sales to pick up in the days leading up to Diwali.”

Eicher Motors Ltd.'s Royal Enfield’s sold 70,541 units in October, a marginal increase of 1 percent from the year-ago month, according to its stock exchange notification.

Key sales highlights (YoY):

• Sales of models with engine capacity upto 350cc up 3 percent at 67,484 units.
• Sales of models with engine capacity exceeding 350cc down 31 percent at 2,967 units.
• Exports down 72 percent at 407 units.

TVS Motor Company Ltd. sold 3.98 lakh units in October, an increase of 26 percent from the same month in 2017, according to its stock exchange filing.

Key highlights (YoY):

• Two-wheeler sales up 25 percent at 3.84 lakh units.
• Scooter sales up 41 percent at 1.51 lakh units.
• Motorcycle sales up 20 percent at 1.5 lakh units.
• Three wheeler sales up 56 percent at 14,120 units.
• Exports up 27 percent at 45,437 units.

Tata Motors Ltd.’s sales rose 18 percent on a yearly basis to 47,710 units last month, according to its stock exchange notification

Key sales highlights (YoY):

• Domestic commercial vehicle sales up 22 percent at 39,420 units.
• Medium and heavy commercial vehicle sales up 16 percent at 13,185 units.
• I&LCV sales up 29 percent at 4,841 crore.
• SCV Cargo and Pickup segment up 30 percent at 18,209 units.
• Commercial passenger vehicle sales down 2 percent at 3,185 units.
• Domestic passenger vehicle sales up 18 percent at 16,475 units.
• Exports up 6 percent at 4,554 units.

Mahindra & Mahindra Ltd. sold 58,416 units in October, an increase of 14 percent from October 2017, according to its stock exchange filing.

Key sales highlights (YoY):

• Passenger vehicle sales up 3 percent 24,066 units.
• Utility Vehicle sales up 1 pecent at 22,279 units.
• Commercial vehicle sales up 26 percent at 24,353 units.
• Three wheelers sales up 13 percent at 6,931 units.
• Total domestic sales up 13 percent at 55,350 units.
• Total exports up 33 percent at 3,066 units.

Ashok Leyland Ltd.’s sales rose 17 percent on a yearly basis to 15,149 units last month, according to its stock exchange notification.

Key sales highlights (YoY):

• Sales of medium and heavy commercial vehicles up 7 percent at 9,797 units.
• Sales of light commercial vehicles up 41 percent at 5,352 units.

Maruti Suzuki India Ltd. sold 1.46 lakh units in October, a little changed from the year-ago month.

October sales highlights (YoY):

• Sales in mini segment vehicles rose 1.1 percent to 32,835 units.
• Sales in compact segment rose 3.7 percent to 64,789 units.
• Sales in utility vehicles segment fell 11.2 percent to 20,764 units.
• Sales in vans segment rose 7.9 percent to 13,668 units.
• Overall domestic sales rose 1.5 percent to 1.38 lakh units.
• Overall exports fell 17 percent to 8,666 units.

The tractor maker sold 13,140 units last month, an increase of 28.8 percent from same period year-ago, according to its stock exchange filing.

Key sales highlights (YoY):

• Domestic sales up 28.7 percent at 12,867 units.
• Exports up 33.8 percent at 273 units.

A slow start to the festive season, higher upfront insurance costs and fuel prices are likely to slow down auto sales in October, according to a BloombergQuint poll of analysts.

“Our dealer checks indicate that the start to the festive season has been slow, especially for passenger vehicles and two-wheelers, as sentiment has been affected due to higher fuel prices, interest rates and insurance costs,” said Nomura Auto Analyst Kapil Singh in his monthly estimate note.

The Japanese brokerage expects the sales of passenger vehicles and two-wheelers sales to grow by 4 percent and 11 percent, respectively, in October.

Motilal Oswal, too, expects a slow start to auto sales and said that southern markets like Kerala are witnessing a gradual recovery after the floods which will add numbers to the monthly auto sales. “Dealer checks indicates only a marginal improvement in demand momentum, leading to high inventory levels,” said Jinesh Gandhi, research analyst at the brokerage.