22586224_AUTOMOBILE_SALES_–_SEPTEMBER_2013

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Institutional Equities

MonthlySalesUpdate

Automobile SalesSeptember 2013

Car, CV Sales Stay Weak, But Improvement In Two-wheelersAutomobile sales in September 2013 were mixed, with two-wheeler OEMs (originalequipment manufacturers) and select four-wheeler OEMs posting YoY growth whilecommercial vehicle (CV) OEMs failed to witness any improvement, down sharply YoY.In the two-wheeler segment, all companies posted YoY growth in sales ahead of thefestive season, with Hero MotoCorp and TVS Motor reporting a 16% YoY growth in saleseach and Bajaj Auto registering a muted 2% YoY growth. Hero MotoCorps 16% YoYsales growth was because of a low base of last year, while in case of TVS Motorrobusttwo-wheeler sales and strong exports boosted overall sales. Honda Motors andScooters India (HMSI) and Yamaha India continued their strong momentum, with salesgrowing 35% and 42% YoY, respectively.

In the passenger car segment, domestic sales were either flat or down YoY in case of mostOEMs. Overall sales looked better helped by higher exports in case of players like MarutiSuzuki India (MSIL) and Toyota India. Ford India and Honda Indias salescontinued to growon the back of successful recent launches of new models and a low base of last year.Mahindra & Mahindras(M&M) utility vehicle (UV) sales did not witness any improvement, withits UV and Verito sales declining 21% YoY, while tractor sales surprised positively with a 33%YoY growth. With no improvement in the macro-economic environment, sales of CVs remainedweak, with all the players posting a steep YoY fall. Tata Motors reported a 42% YoY decline indomestic medium and heavy commercial vehicle (MHCV) sales, while Ashok Leyland posted a32% YoY fall in overall sales. Domestic sales of VECV (Volvo-Eicher Commercial Vehicles)also fell sharply by 22% YoY, but its overall sales fell only 11% YoY helped by strong exports.Going forward, sales of cars and CVs are expected to remain under pressure because of aweak macro-economic environment and rising fuel prices. However, in case of two-wheelers

their sales could improve slightly led by strong rural sales on account of a good monsoon and alow base of last year.Key highlights

MSIL reported a 12% YoY growth in overall sales on the back of strong exports and amarginal improvement in domestic sales. Sales of mini segment cars, including M800, Alto,A-Star and WagonR, increased 5% at 41,061 units, while Dzire sales grew 43% YoY at16,708 units.UV sales - largely comprising Ertiga sales fell sharply by 63% YoY at 2,657units. Exports witnessed a strong MoM improvement of 39% at 11,305 units.

Tata Motorsoverall sales continued to remain under pressure, with sales falling 33% YoY.CV sales were down 32% YoY at 33,119 units, while domestic passenger vehicle saleswitnessed a steep 41% YoY fall at 12,879 units. The company sold 9,766 units of Nano,Indica, Indigo models and 3,113 units of Sumo, Safari, Aria and Venture models.

Hyundai Indias domestic sales were flat YoY, but overall sales fell 4% YoY due to subdued

exports. The Grand i10 car, launched recently, has been well accepted in the market.GM India reported a 5% YoY fall in sales, while Toyota Kirloskar India posted a 11% YoYgrowth helped by higher exports.

Ford India, and Honda Cars India (HCI) reported strong YoY growth of 51% and 88% YoY,respectively, due to a low base of last year and recent successful launches of FordEcosport and Honda Amaze.

M&Ms automobile division reported a 11% YoY fall in sales following a 21% YoY decline inUV and Verito car sales. Tractor sales grew strongly by 33% YoY at 26,637 units.

In two-wheelers, Hero MotoCorp posted a 16% YoY rise in sales backed by a low base oflast year.TVS Motor Company also reported a 16% YoY growth in sales led by robust two-wheeler sales and strong exports.

Bajaj Autossales grew by a muted 2% YoY, with its three-wheeler sales declining 2% YoY.

Motorcycle sales grew 3% YoY, and exports rose 10% YoY.HMSI posted a 35% YoY growth in sales led by robust motorcycle sales, up 44% YoY at163,229 units, and scooter sales rising 28% YoY at 165,736 units. Yamaha India alsoposted a strong 42% YoY sales growth backed by a 53% YoY rise in domestic sales.

In the CV space, sales remained weak. OEMs in this space like Tata Motors, AshokLeyland and Eicher Motors posted double-digit YoY fall in sales.

Gaurant [email protected]+91-22-3926 8145

3 October 2013


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2 Automobile SalesSeptember 2013

Monthly salesSep Aug Sep YoY MoM

Comments

2012 2013 2013 (%) (%)

Two-wheeler

Hero MotoCorp 404,787 459,996 468,670 15.81.9

Sales grew on the back of a low base of last year.

TVS Motor Company 170,097 155,532 197,409 16.1 26.9 Two-wheeler sales rose 15% YoY at 189,609 units, while exports grew robustly by 47% YoY at 27,577 units.

Bajaj Auto 360,152 312,188 367,815 2.117.8

Exports grew 10% YoY at 146,847 units, while three-wheeler sales fell 2% at 43,936 units.

HMSI 243,126 308,932 328,965 35.36.5

Motorcycle sales grew 44% YoY at 163,229 units, while scooter sales rose 28% YoY at 165,736 units.

Yamaha India 42,235 60,996 60,031 42.1(1.6)

Domestic sales grew 53% YoY at 46,790 units.

Passenger car

Maruti Suzuki India 93,988 87,323 104,964 11.720.2

Growth driven largely by exports, up 181% YoY at 14,565 units. Dzire sales grew 43% YoY at 16,708 units , while UVsales fell 63% at 2,657 units

Tata Motors 75,773 49,611 50,427(33.4) 1.6

Passenger car sales declined 41% YoY at 12,879 units; while CV sales fell 32% YoY at 33,119 units.

Hyundai Motors 53,557 52,319 51,418(4.0) (1.7)

Domestic sales at 30,601 units were flat YoY, but exports declined 8% YoY at 20,817 units. Recently launched Grandi10 car received a strong response in the market.

GM India 7,403 6,673 7,048(4.8) 5.6

Sold 2,826 units of Beat, 1,894 units of Sail and 1 ,543 units of Enjoy cars.

Ford India 9,418 11,065 14,217 51.028.5

Domestic sales grew 37% YoY at 9,418 units, largely because of strong demand for its recently launched Ecosportmodel.

Toyota Kirloskar 14,291 15,201 15,795 10.53.9

Domestic sales were flat YoY. During the month, the company exported 3,780 units of Etios

Honda Cars India 5,508 9,469 10,354 88.09.3

Sold 6,679 units of Amaze model and 1,452 units of Brio model.

M&M - Auto 48,342 37,897 43,289(10.5) 14.2

UV and Verito sales down 21% YoY at 18,916 units. Exports declined 12% YoY at 2,715 units.

M&M- Tractors 20,085 14,158 26,637 32.688.1

Domestic sales up 37% YoY at 25,922 units.

VECV 3,150 3,207 2,803(11.0) (12.6)

Domestic sales down 22% YoY at 2,361 units.

Ashok Leyland 10,620 7,139 7,232

(31.9) 1.3

MHCV sales down 38% YoY at 4,715 units. LCV Dost sales down 17% YoY at 2,517 units

Source: Respective companies


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3 Automobile SalesSeptember 2013

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22586224_AUTOMOBILE_SALES_–_SEPTEMBER_2013