January Auto Sales: Bajaj Auto Sales Rise 15%; Hero MotoCorp Down 9%
Bajaj Auto January Sales Rise 15%, Shares Rebound
Shares of Bajaj Auto parred losses and extended gains for the third day. The stock rose as much as 1.3 percent to Rs 2,635.
The two-and-three-wheeler maker sold 4.07 lakh units last month, an increase of 15 percent from January 2018, according to its stock exchange filing.
Key Sales Highlights (YoY)
- Domestic motorcycle sales rose 25 percent to 2.03 lakh units.
- Motorcycle exports rose 17 percent to 1.47 lakh units.
- Overall motorcycle sales rose 21 percent to 3.5 lakh units.
- Overall commercial vehicle sales fell 12 percent to 56,690 units.
- Overall domestic sales rose 14 percent to 2.31 lakh units.
- Overall exports rose 16 percent to 1.75 lakh units.
Hero MotoCorp's Sales Slump In January
Hero MotoCorp Ltd.’s January sales dropped 9 percent year-on-year to 5.82 lakh units.
“The weak market sentiment from the previous quarter spilled over to January and continued to dampen sales,” the two-wheeler maker said in its exchange filing. The company also blamed other factors such as the credit crunch and higher two-wheeler insurance costs for the drop in sales.
Hero MotoCorp, however, expects sales to improve in the January to March quarter.
Customer sentiment has begun to improve in the past two weeks, and the company expects sales to pick up in this quarter, which has traditionally been a phase of positive sales.Hero MotoCorp’s Exchange Filing
Tata Motors' Sales Plunge Due To 'Low Customer Sentiment'
Tata Motors Ltd.’s domestic sales in January dropped 8 percent to 54,915 units on a yearly basis as against 59,441 units sold over last year.
While the company’s commercial vehicle sales for the domestic market dipped 6 percent to 37,089 units, the medium and heavy commercial vehicle segment witnessed a decline of 9 percent to 11,694 units in January, year-on-year.
"Subdued market sentiments, high interest rates, lag effect of implementation of revised axle load norms, slowing industrial output and declining industrial production growth were the primary factors behind the lull," the company said in its filing.
The company's passenger vehicle sales for the domestic market slumped 11 percent to 17,826 units last month. It attributed the dip to low customer sentiments caused by “non-availability of retail finance and liquidity crunch”.
The company said sales from exports in January was at 3,270 units, plunging 37 percent over last the year owing to current liquidity crisis in Nepal, formation of new government in Bangladesh and political uncertainty in Sri Lanka.
Eicher Motors' Royal Enfield Sales Continue To Slump
The maker of Royal Enfield motorcycles reported a 7 percent dip in sales on a yearly basis to 72,701 units in January. Sales of models with engine capacity up to 350cc fell 7 percent to 67,915 units while the sales of models with engine capacity exceeding 350cc fell 4 percent to 4,786 units. The company exported 1,829 units last month.
Commercial Vehicle Demand Boosts Mahindra & Mahindra Sales
Mahindra & Mahindra Ltd.'s sales rose 7 percent to 55,722 units in January on higher demand for its commercial vehicles.
The company sold 22,625 units of commercial vehicles in the month gone by, an increase of 8 percent from the year-ago period. Sales of passenger cars also improved by 1 percent to 23,872 units.
Sales under the medium and heavy commercial vehicles segment, however, shrunk by 19 percent to only 849 units, versus 1,049 units.
The biggest improvement was seen in the three-wheeler segment, where M&M sold 6,003 units, a 27 percent jump on a yearly basis.
Exports also spiked 22 percent in January to 3,222 units, from 2,631 units in the year-ago period.