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Date Submitted: 11/28/2010 08:43 PM
Sector Watch: Auto Round-up – Sales Update – June 2009 July 10, 2009
SECTOR WATCH
2-wheeler segment
!
Auto Round-up
Sales Update – June 2009
Gaining momentum
The pace of growth in 2-wheeler sales are improving as interest rates ease and on better demand in rural and semi-urban areas, but exports are falling for successive five months. The month of June 2009 brought cheer to auto makers, with sales of almost all the 2-wheeler companies reporting impressive growth. 2-wheeler market leader Hero Honda Motors Ltd. (HHML) continued with its good run. The company sold 365,734 units as against 295,675 units sold in the same month of the last fiscal; a strong growth of 24% YoY and claimed 59% market share of the domestic market. Honda's other 2-wheeler arm Honda Motorcycle & Scooters India (HMSI), posted its highest ever sales since inception. The company sold 103,209 units as against 60,452 units sold in the last fiscal; posting an impressive growth of 28% YoY. TVS Motors posted a 6% YoY growth in total sales at 115,448 units (109,082 units). However, the company's motorcycle sales were down 10% YoY to 46,048 units. India's second largest 2-wheeler maker Bajaj Auto Ltd. (BAL), continued its poor performance in the month of June 2009. The company's motorcycle sales during the month declined 5% YoY to 167,945 units. However when compared on sequential basis, BAL posted a marginal growth of 2% m-o-m as against 165,049 units sold in May 2009. TVS Motors continued to falter on the exports front. The company has posted a sharp decline of 33% YoY with 10,087 units as against 15,010 units. However, Bajaj has witnessed a revival in exports. The company's exports grew 4% YoY to 67,726 units as against 64,878 units sold in the same month of the last fiscal. Figure 1: Motorcycle sales (m-o-m)
450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 Jan.'09
Source: IDBI Capital Market Services
Feb.'09
Mar.'09
Apr.'09
May '09 BAL HHML
Jun.'09...