The first leg of the 35-day festive period, which ended with Dussehra, failed to bring any cheer for auto companies. While makers of passenger vehicles struggled to meet demand due to the persistent shortage of semiconductors, a recovery in demand remained elusive for two-wheeler manufacturers despite offers and schemes. The overall season, which ends two days after Diwali, is unlikely to bring any turnaround in either the supply or the demand scenario, said dealers and officials at auto companies.
Weak monsoon rains could have a negative impact on India's automobile sector which is seeing early signs of improvement with the sale of passenger cars and utility vehicles rising in May.
The broader NSE Nifty ended 57 points, or 0.49 per cent, lower at 11,498.90 in its fourth straight day of losses.
As per SIAM data, vehicle sales across categories, including passenger vehicles and two-wheelers and commercial vehicles stood at 18,21,490 units last month as against 23,82,436 units in August 2018, a fall of 23.55 per cent.
Market leader Maruti Suzuki India's passenger vehicles sales declined by 2.34 per cent last month at 133,702 units. Hero MotoCorp reported total two-wheeler sales of 480,196 units last month, down 20.05 per cent.
'Given all the linkages, the monthly registration data for new vehicles, may well be the single most accurate indicator of India's economic health,' points out Devangshu Datta.
While commercial vehicle (CV) sales were the worst hit, down by 21 per cent to 67,793 units from 85,833 units, two-wheeler sales dropped by 16 per cent to 12,64,169 units from 15,00,545 units. Passenger car sales dropped nine per cent to 215,716 units from 236,586 units.
The onus is on the banks to pass the benefit to customers.
Domestic passenger car sales grew 2.64 per cent to 1,76,011 units in March.
With 15% customs duty hike on locally assembled vehicles, it is cheaper to import from Thailand, says India MD
Nodal body, which will take charge on October 1, to maintain data, will suggest recalls & fines.
The government will create an EV Venture Capital Fund, for financial support to start-ups in the segment. The overall aim is to make Tamil Nadu the preferred destination for EVs and component makers.
Tata Motors, Hero MotoCorp, Ashok Leyland, M&M are up 3-6% on BSE.
"Karnataka has always forged inclusive economic development and we must not allow such communal exclusion- If ITBT became communal it would destroy our global leadership. @BSBommai please resolve this growing religious divide," Mazumdar-Shaw said.
Maruti launched the Baleno in May 2016 and the new Swift in February this year
The fact is that BS-IV vehicles, particularly diesel trucks, are much less polluting than BS-III ones, says Sunita Narain.
While commercial vehicles are expected to benefit from strong replacement demand, the two-wheeler and tractor segments are expected to gain from a recovery in the rural economy.
7 Maruti models among top 10 best selling passenger vehicles in April
Chinese automakers Great Wall Motors, FAW Haima Automobile, and Changan Automobile, after dithering about entering India for some years, have been encouraged by the robust sales performance of the late entrants Kia Motors and MG Motors even in a slowing market.
The luxury car market leader will be producing the new-generation cars, sedans, SUVs, and AMG performance cars at one facility.
Large investors track high-frequency data that is immediately available today. That data has been bullish, points out Debashis Basu.
The optimism stems from benign fuel prices, adequate and well distributed rainfall and the recent measures announced by the government to boost liquidity at banks and NBFCs.
'Some companies have agreed to 2-3% incentive but the automakers and SIAM have to decide amongst themselves'
Exports in October and November fell 28 per cent and 17 per cent, respectively.
Durable, automobile and real estate players have been lobbying hard for a tax cut, saying it will boost demand.
Maruti's Alto retained the top position in June with 14,856 units, as against 15,750 units in June last year.
The five-year (2015-16 to 2020-21, or FY21) compound annual growth rate (CAGR) of the overall auto industry is now negative at 2 per cent, against 5.7-per cent growth it saw in the previous five years (from 2010-11 to 2015-16).
Auto Expo 2023 may not trigger a fresh rally in automobile stocks, say analysts, as this year's edition lacks participation from major listed players. It is also owing to the focus on electric vehicles (EVs), a segment where four-wheelers have minuscule market share. "In the passenger vehicles (PV) segment, Maruti Suzuki India and Tata Motors are the only listed players.
Mopeds are sought by people with smaller businesses, with their weight-carrying and haulage ability beside being lighter and easy to manoeuvre in traffic.
Data issued by Siam shows sale of PVs (cars, vans and utility vehicles) grew 14.3 per cent to 275,417 vehicles.
Market leaders saw good traction for new cars, including the electric ones.
First off the block will be a new multi-purpose vehicle which is being co-developed with Toyota - Suzuki's alliance partner. The model will also wear a Toyota badge.
The auto maker wants to cut output in the wake of low demand.
'Some of the launches may get deferred due to the semiconductor shortage, which is unlikely to get resolved before the second half of 2022.'
Industry representatives have said from the second half of the year, they hope to see revival because the rural economy is looking up and the projects the government has announced.
Maruti says, WagonR is one of the top 5 brands in India.
The number of Indians over 15 either working or looking for work is lower as a percentage than in the United States, China, Bangladesh or Pakistan, points out Aakar Patel.
Close to half a dozen more three-row premium mid-size models are expected to hit the road over the next two years.
Scooters, once the fastest growing sub-segment, also declined for the second consecutive month in September.
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