Anticipating a robust demand during the festive season, the company is targeting to sell over five lakh motorcycles in the next two months
Samvat 2072: Auto sector could see faster recovery
It was a ride on the fast lane for motorcycles in India with sales in the domestic market going up as much as 19 per cent in the just-ended financial year to 49,64,442 units.
As per a Knight Frank FICCI Naredco report, a majority 69% of the stakeholders say that the residential sales will remain tepid or may even go down further in the coming six months.
With a slew of new players entering the Indian small car market, segment leaders like Maruti Suzuki India and Hyundai Motor India will face challenge to their domination.
The automobile services segment, from radio taxi services to used cars, is seeing increased interest from venture capital (VC) investors.
New cars that set the bar higher for quality, design and pricing, and helped automakers rake in a good moolah.
The company had sold 320 units in 2011 here, the Indian subsidiary of the auto maker said in a statement.
Buoyed by impressive sales last year in India, German luxury car maker Audi is gearing up to showcase a host of models, including the debut of its A3 sedan, at the upcoming Auto Expo.
Hybrids have helped Maruti acquire leadership in SUVs, a segment that was never its forte. Toyota has also risen with the hybrid tide to clock its highest-ever annual sales in 2023.
Hero MotoCorp, India's largest two-wheeler maker, has seen a decline in its market share in rural areas since 2018, losing ground to major competitors such as TVS Motor Company, Bajaj Auto, and Honda Motorcycle & Scooter India (HMSI), according to data from JATO Dynamics reviewed by Business Standard. Hero's share of rural two-wheeler sales in India has dropped from 40.4 per cent in 2018 to 33.3 per cent in 2023. In contrast, Bajaj's share increased from 12.7 per cent in 2018 to 13.9 per cent, HMSI's from 21.8 per cent to 22.2 per cent, and TVS' from 15.5 per cent to 17.8 per cent. Suzuki Motorcycle India has also seen its share rise from 1.7 per cent to 2.5 per cent.
The rate cut would mean actual gains for vehicle buyers only when banks pass on benefits.
State-run Indian Oil Corporation (IOCL) reported a weak performance in the fourth quarter of FY24 (January-March 2024), and the turmoil in the energy market indicates it could endure another lacklustre quarter. The oil marketing company (OMC) reported an Ebitda of Rs 10,400 crore, down 27 per cent year-on-year (Y-o-Y) due to weak reported gross refining margin (GRM) of $8.4 per barrel in Q4FY24, which was almost half the consensus expectation of $15 per barrel.
Sales of commercial vehicles rose 5.30 per cent to 52,481 units in January this year, SIAM said.
Financials emerged as the top gainers while auto shares rallied on robust September sales
In the past one year, the share of state-run banks in auto finance has increased significantly, and in some cases nearly doubled, on the back of competitive rates offered by banks such as State Bank of India.
New Creta, petrol Vitarra Brezza.. A quick look at what went down at Auto Expo Day 2.
Top losers in the Sensex pack included ICICI Bank, Tata Steel, Vedanta, HDFC IndusInd Bank, Tata Motors, RIL and ONGC -- falling up to 4.45 per cent.
Geopolitical events, macroeconomic data and quarterly earnings of corporates would guide the stock market in a holiday-shortened week ahead, analysts said. Stock markets will remain closed on Wednesday for Ram Navami. "This week promises to be crucial for the market as fresh worries about a potential conflict between Iran and Israel emerge.
Audi India launched the second generation 2016 Audi R8 at the show.
Tata Motors, Mahindra & Mahindra and Kia India on the other hand witnessed an increase in their market share based on the retail sales last fiscal. As per the Federation of Automobile Dealers Associations (FADA), the retail sales of country's largest carmaker Maruti Suzuki India rose to 14,79,221 units in 2022-23 fiscal, attaining a market share of 40.86 per cent. It had retailed 12,39,688 units in 2021-22 and grabbed a market share of 42.13 per cent.
Despite of reoccurring crisis in 2013, there were many auto-giants that did well in sales due to some of their impeccable mean machines. Here are some of the top gainers of 2013.
In a major victory for Tatas, an arbitral tribunal has awarded Tata Motors a compensation of over Rs 766 crore for the losses incurred because of protests by Trinamool Congress that stalled its small car project at Singur in West Bengal. The tribunal asked the West Bengal government to pay Tata Motors the compensation, along with interest, according to a stock exchange filing by the Mumbai-based auto major on Monday. The company stated that the arbitral tribunal has asked the West Bengal Industrial Development Corp (WBIDC) to pay the company Rs 766 crore compensation, in connection with losses incurred on its manufacturing site in Singur.
Two-wheeler exports from India have decreased by 20 per cent year-on-year (Y-o-Y) to 1.69 million units in the first half (H1) of 2023-24 (FY24) due to a challenging geopolitical situation and foreign exchange (forex) crises in key markets such as South Asia, industry body Society of Indian Automobile Manufacturers (Siam) said on Monday. On the other hand, passenger vehicle (PV) exports in H1FY24 increased by 5 per cent to 336,754 units because the key markets are much more diversified worldwide, Vinod Aggarwal, president, Siam, told reporters during a press conference. The Russia-Ukraine war, which started in February 2022, has brought significant instability to global fuel prices.
This year, both rural and urban markets have reported around 18 per cent fall in the first quarter. However, most auto majors expect that by January, there would be a pick up.
Auto companies are looking forward to the continuation of incentives, including excise duty cuts, given in the two stimulus packages in the Budget 2009-10.
Consumers are preferring time-tested category leaders or vehicles that are relevant to the Indian market.
Tata Motors was the top Sensex gainer, up nearly 5%.
lobal output returning to its medium-term growth rate of 4 per cent
Tech Mahindra was the top loser in the Sensex pack, crashing over 9 per cent, followed by Kotak Bank, Axis Bank, TCS, Infosys and HUL. On the other hand, Hero MotoCorp, Bajaj Auto, Bajaj Finance and Titan were the gainers.
Declining motorcycle sales remained a cause of worry.
Pune-based Bajaj Auto, the country's second biggest two-wheeler maker, reported a four-fold increase in net profit at Rs 528.65 crore for the fourth quarter ended March 31, over the same quarter last year. Net profit in the year-ago quarter was Rs 130.21 crore, after the company reported a slump in sales following the economic turmoil that crippled demand.
According to Mumbai-based auto analysts and dealers, cars are currently carrying an average inventory of about 25 days while two-wheelers are 20-25 days. Usually, cars carry an inventory of 12-15 days while two-wheelers have an inventory level of 10-15 days. Although the term inventory is used for semi or partly finished goods, it also explains completely finished goods, which are ready for sale.
Auto stocks will be in focus
M&M conducted raids across six auto spare part makers and sales outlets.
Based in Aurangabad, the Rs 450-crore (Rs 4.5 billion) Bagla Group is involved in aluminium casting business and delivers shafts and spindles to firms such as Bajaj Auto, Lamborghini and Piaggio.
Corporate earnings got a big boost from the fall in commodity and energy prices in July-September 2023 (Q2FY24) despite a slowdown in revenue growth during the quarter. The combined net profits of 3,123 firms that have declared their results so far were up 38 per cent year-on-year (Y-o-Y) to Rs 3.07 trillion in Q2FY24, up from Rs 2.24 trillion a year ago. Earnings were, however, down 3.5 per cent on a sequential basis from Rs 3.18 trillion in April-June (Q1) FY24.
With the Nano's sales stuck in a low gear, firm drives hope on product variants and the base of hopefully satisfied customers.
The NSE Nifty gained 77.85 points, or 0.71 per cent, to finish at 11,008.30. Intra-day, it shuttled between 10,821.55 and 11,035.65.
The domestic passenger car sales fell by 6.59 per cent in October to 98,900 units from 1,05,877 units in the same month last year.
