Weak demand, a key reason for poor auto sales in Dec 2012

Microsec has come out with its report on "Auto Sector Update for December 2012". According to the research firm, Indian automobile manufacturers reported poor sales growth in December, 2012 on account of weak demand. Among the segments, medium and heavy commercial vehicle (MHCV) was the most impacted one, with Tata Motors reported a decline of 45.93% on YoY basis. Performance of Maruti Suzuki and Ashok Leyland also remained weak. However, sluggish recovery was seen in two wheeler segments. Hero MotoCorp and Bajaj Auto performed better than expected.

Hero MotoCorp (HMCL)

• Hero MotoCorp, reported total sales of 541,615 units in the month of December, 2012, registering a growth of 0.25% over the corresponding month in 2011, when the company had sold 540,276 units.
• On MoM basis also, company's total sales increased by 7.83% .
• However, cumulative sales of HMCL for the period, April-December of FY2012-13, declined by 2.46% to 4,548,232 units against 4,663,178 units, during the same period of last year.

TVS Motor Company  (TVS)

• TVS, registered total sales of 156,221 units in December, 2012, compared to 170,428 units in the corresponding month of the previous year, hence, showing a decrease of 8.34%. On monthy basis also, the company reported a decline of 9.09%.
• Two-wheeler sales of the company decreased by 9.63% YoY for the month of December, 2012 to 151,735 units against 167,905 units in the year-ago period.
• Sales of motorcycle incresed by 6.26% YoY but sales of Scooters decreased by 32.15% on YoY basis.
• Company's total exports decreased by 9.91% to 20,251 units from 22,481 units in the same month of previous year.
• Collective sales of the company for the period, April-December of FY2012-13, declined by 8.77% to 1,523,655 units against 1,670,040 units during the same period of last year.

Bajaj Auto  (BAL)

• BAL, registered total sales of 343,946 units in December, 2012, compared to 305,690 units in the corresponding month of the previous year, hence, showing a growth of 12.51%. The company reported a declined of 7.61% on MoM basis.
• For the month of December, 2012, BAL's motorcycle sales increased by 13.14% YoY to 298,350 units and three-wheeler commercial vehicle sales increased by 8.59% YoY to 45,596 units.
• During the month BAL's Exports increased by 5.27% YoY to 126,016 units.
• Cumulative sales of the company for the period, April-December of FY2012-13, decreased by 2.29% to 3,255,920 units against 3,332,393 units during the same period of last year.

Maruti Suzuki  (MSL)

• Sales volume of Maruti Suzuki stood at 95,145 units in December, 2012 against 92,161 units in the same month of last year, registering a growth of 3.24% YoY. However, on MoM basis sales decreased by 7.81%.
• Sales volume in the Mini segment registered an decline of 15.02% on YoY basis.
• Sales in Mid Size Segment decresaed by 60.97% on YoY basis.
• However, sales of compact and super compact segment both increased by 42.30% and 8.86% YoY, respectively.
• Cumulative sales of the company for the period, April-December of FY2012-13, increased by 7.03% to 827,725 units against 773,361 units, during the same period of last year.

Tata Motors  (TML)

• Total sales of Tata Motors stood at 65,582 units in December, 2012, showing a decline of 20.29% on YoY basis. On MoM basis also, sales decreased by 1.38%.
• TML's M&HCV sales volume declined by 45.93% YoY basis but on MoM basis sales increased by 3.91% to 9,866 units. On the other hand, LCV sales increased by 27.62% YoY and 8.10% MoM to 37,649 units. As a result, overall CV sales volume declined marginally by 0.49.% on YoY basis to 47,747units. However, on MoM basis sales increased by 7.20%.
• Passenger car sales volume decreased by 50.94% on YoY basis to 14,185 units. Indica, Indigo and Nono sales declined by 52.42% on YoY and 16.85% on MoM basis to 11,257 units.
• Company's sales from exports stood at 3,882units in December, 2012 compared to 5,615 units last year, registering a decline of 30.86%.
• Cumulative sales of the company for the period, April-December of FY2012-13, decreased by 2.08% to 613,750 units against 626,770 units during the same period of last year.

Ashok Leyland  (AAL)

• During the month of December, total sales of Ashok Leyland stood at 7,299 units, registering a declined of 19.33% YoY. On monthly basis also, sales declined by 0.96%.
• During December, sales of Ashok Leyland's MHCV decreased by 34.21% to 5,230 units from 7,949 units in the same month of 2011.
• The company sold 2,069 units of SCV in December, 2012.
• Cumulative sales of the company for the period, April-December of FY2012-13, increased by 20.61% to 79,990 units against 66,321 units during the same period of last year.