Strong Demand Drive Auto Sales In May
India’s automakers had a merry month of May as rising rural demand and government’s infrastructure push propped up sales of two-wheelers and commercial vehicles.
India’s largest carmaker Maruti Suzuki Ltd. reported its best May sales growth in over a decade, driven by the compact segment. The company sold 1.72 lakh vehicles, up 26 percent from the year-ago period, it said in an exchange filing.
The country’s largest truckmaker Tata Motors Ltd. registered a 58 percent increase in sales as compared with the same month last year, according to its stock exchange filing. Sales were driven by its commercial vehicle segment that benefitted from a lower base as truck sales had been hit by the transition to stricter emission norms last year. Tata Motors sales rose 56 percent at 36,806 units
A dealer channel check by Nomura earlier indicated that inauspicious period from mid-May led to lower retail offtake. The companies, however, will use the opportunity to build up inventory given the healthy demand outlook, the brokerage said in a note.
In the two-wheeler segment, Eicher Motors Ltd.’s sales of two-wheelers with an engine capacity of 350cc increased 23 percent over the year-ago month to 68,813 units.
Hero MotoCorp’s Sales Rise 11%
Hero MotoCorp Ltd.’s sales in May rose 11 percent over the year-ago month to 7.06 lakh units, according to its exchange filing.
“Sustaining its strong sales momentum, Hero MotoCorp has continued to further consolidate its domestic market leadership with an all‐time high sales for the month of May,” the country’s largest two-wheeler maker said.
Scooters, Motorcycles Drive TVS Motors' Sales In May
TVS Motor Company Ltd.’s sales rose in May, driven by its motorcycle and scooter segment. Total sales increased 10 percent year-on-year to over 3.09 lakh units, the maker of Jupiter scooters said in an exchange filing.
Scooter sales rose 11.9 percent to 95,879 units, while motorcycle numbers rose 7.4 percent to 1.26 lakh units. Three-wheeler sales rose 78.2 percent to 6,587 units.
The company exported 62,218 units last month, a rise of 53.2 percent over the same month last year.
Tata Motors Sales Rise 58% In May
Mumbai-based Tata Motors Ltd. sold 54,295 units in May, an increase of 58 percent form the year-ago month, according to its stock exchange filing. The sales were driven by its commercial and passenger vehicle businesses in the domestic market.
Key sales highlights (May, YoY):
- Domestic passenger vehicle sales rose 61 percent at 10,855 units.
- Domestic commercial vehicle sales rose 56 percent at 36,806 units.
- Medium and heavy commercial vehicle segment’s sales rose 90 percent at 36,806 units.
M&M Sales Rise 12% In May
Anand Mahindra-led Mahindra & Mahindra Ltd.’s sales rose 12 percent in May, led by commercial vehicles, according to its exchange filing.
Key sales highlights (May, YoY):
- Passenger vehicle sales rose 2 percent to 20,715 units.
- Sales of utility vehicles remained flat at 19,295 units.
- Commercial vehicle sales rose 15 percent to 18,748 units.
- Three-wheeler sales rose 7 percent to 4,355 units.
- Total domestic sales increased 8 percent to 43,818 units.
- Exports jumped 15 percent to 3,031 units.
Tractor sales highlights (May, YoY):
- Total tractor sales rose 14 percent to 25,749 units.
- Domestic tractor sales rose 14 percent to 24,710 units.
- Tractor exports rose 9 percent to 1,039 units.
Ashok Leyland’s Sales Rise 51% In May
Ashok Leyland Ltd.’s sales in May rose 51 percent over the year-ago period to 13,659 units, it said in an exchange filing.
The Chennai-based truck and bus maker sold 10,421 medium and heavy commercial vehicles last month, up 70 percent over the year-ago period. Its light commercial vehicle sales rose 10 percent to 3,238 units.
Shares of Ashok Leyland snapped its two-day decline and rose as much as 2.7 percent to Rs 152 apiece after the announcement.
Eicher Motors' Royal Enflied's Sales Rise 23% In May
Eicher Motors Ltd.’s Royal Enfield’s sales rose in May, led by an increase in demand for its Royal Enfield motorcycles having an engine capacity of up to 350cc.
Overall sales rose 23 percent over the same month last year to 74,697 units. Sales of two-wheelers having an engine capacity of 350cc increased 23 percent over the year-ago month to 68,813 units, according to its exchange filing. That of models with higher engine capacity rose 21 percent year-on-year to 5,884 units.
Exports rose 7 percent from last May to 2,187 units.
Shares of Eicher Motors fell 1.3 percent to Rs 30,369 apiece as of 11:20 a.m.
Maruti Suzuki’s Shares Rise After Record May Sales Growth
Shares of Maruti Suzuki Ltd. gained after the company reported its best May sales growth in over a decade, driven by the compact segment.
The country’s largest carmaker sold 1.72 lakh vehicles, up 26 percent from the year-ago period, it said in an exchange filing.
Reacting to the announcement, the automaker’s shares rose as much as 2.8 percent to Rs 8,780 apiece. The stock was the second-best performer on the NSE Nifty 50 Index.
Bajaj Auto Sales Rise For Tenth Straight Month; Shares Surge
Bajaj Auto Ltd.’s sales rose for the tenth straight month in May, driven by the healthy performance of the commercial vehicles segment.
Sales of the two- and three-wheeler maker increased 30 percent from the year-ago period to 4.07 lakh units last month, the Pune-based company said in a statement today. Overall motorcycle sales rose 24 percent to 3.42 lakh units. Motorcycle sales in the domestic market rose 23 percent.
Shares of the automaker snapped its two-day decline and rose as much as 2.6 percent to Rs 2,822.95 apiece in early trade. That compares with a 0.8 percent gain in the S&P BSE Auto Index.
Escorts' Tractor Sales Rise 21%
Escorts Ltd. sold 8,325 tractors in May, an increase of 20.9 percent from the year-ago period, according to its stock exchange filing.
The company's domestic sales rose 19.5 percent year-on-year to 8,087 units last month and exports jumped 105.2 percent to 238 units during the period.
Auto Sales: Expectations For June
Auto sales are expected to continue rising across all the segments in May, according to three analysts surveyed by BloombergQuint.
The analysts also expect double-digit growth for passenger and commercial vehicles. Tractors and two-wheeler sales are expected to strengthen in May, driven by the rising rural demand and good monsoons. (More details here).