Indian Automotive
Market
Feb | 2015
Enerdyne monthly report on Indian Automotive Industry
ENERDYNE
Feb ‘15
Indian Automotive Market | FEB 2015
INDUSTRY OVERVIEW
The overall sentiment in the Indian Automotive sector remained good but not great during Feb 2015.
Last month in January had seen overall sales growth of 3.14% and despite interest rates remaining
high and removal of excise concessions from December 2014 , most manufacturers saw single digit
gains in February.
Sales at the top five passenger vehicle makers cumulatively rose 8% to 193,969 units in February over
the previous year.
Two wheeler manufacturers, in comparison felt some heat due to slowing motorcycle sales with
demand in rural markets slumping. In India, 75% of all two wheelers sales is accounted for by rural
India.
Leading players like BAJAJ and HERO posted decline in YOY numbers. Scooters sales though
continued to perform well.
An important barometer of economic health, commercial vehicles sales in February remained positive.
The medium and heavy commercial vehicles showed double digits growth while the light commercial
vehicles segment also exhibited growth momentum.
Maruti Suzuki: the country’s largest carmaker, showed 8.2 percent growth in its February 2015
sales to 107,892 units as compared to 99,758 units sold in February 2014.
The Alto and Wagon R sold 39,988 units, up 7.1 percent from 37,342 units in the year-earlier period.
The Swift, Dzire, Ritz and Celerio together sold 42,778 units, up from 45,721 units, a dip of 6.4
percent. The Ciaz premium saloon sold 5,410 units in the month, taking its aggregate sales since its
launch to just over 28,000 units.
Exports also grew with Maruti Suzuki selling 10,659 units, up 14 % YOY, with exports at 9,346 units
during same month last year.
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Indian Automotive Market | FEB 2015
Hyundai Motor India reported YOY sales growth of 9.7%, with domestic sales of 37,305 units in
February 2015.
The combined sales for the month – domestic as well as export – was 47,612 units as compared to
46,505 units in February 2014. Exports, however, declined by 17.5%, to 10,307 units.
Mahindra & Mahindra saw reduced sales numbers, with total sales at 38,033 units during
February 2015 as against 42,166 units in February 2014, a fall of 9%.
The passenger vehicles segment sold 18,103 units in February 2015 as against 19,308 units in
February 2014, down by 6.24 %.
Tata Motors saw a strong growth of 22% in passenger car sales on the back of the Zest sedan and
with a positive market response to the new hatchback BOLT. TATA sold total of 13,767 units, as
compared to 11,325 units in February 2014.
Though the passenger cars grew by 31% in February in YOY sales, with utility vehicles sales declining
by 15% to 1,962 units, overall growth rate came down.
Cumulative passenger vehicle sales for Tata over the 11-month period for the ongoing fiscal are
119,041 units, down by 5 percent over sales in 2013-14.
Honda Cars India recorded a 16% sales growth in February, selling 16,902 units as against 14,543
units in February 2014.
Honda’s popular sedan – Amaze - was the top-seller with 7,163 units followed by the City which sold
6,505 units. The Mobilio MPV sold 1,697 units, the Brio 1,397 units and the CR-V 140 units, its highest
in a year.
Toyota Kirloskar Motor also did well in February 2015, showing a sales growth of 16.85 % with
sale of 11,802 units as compared to 10,100 units in February 2014. In January 2015, it had recorded a
sales growth of 16 percent.
Combining domestic and export sales, TKM clocked a total of 13,280 units in February 2015 compared
to 11,286 units a year ago. The company exported 1,478 units of the Etios series last month.
Ford India went down in sales by 12% YOY, with domestic sales at 5,959 units as compared to 6,799
units during February last year
GM India saw a massive fall of 22%, selling 4,320 vehicles during the month against 5,607 units sold
in February 2014.
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Indian Automotive Market | FEB 2015
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TWO WHEELERS:
Three out of four two wheeler sold in India are bought in the rural markets, and with the demand in
rural India slumping in February 2015, it was a tough month for motorcycle sales, though demand for
scooters continued to grow.
HERO MotoCorp – India’s largest seller of two wheelers saw of dip of 3.85% in YOY sales, with
sales of 484,769 units during February as compared to 504,181 units in same month last year.
However, by mid-2015, Hero is launching its new scooters range to give strong competition to
HONDA and is busy ramping up its production capacity. Over time R&D has also been strengthened
with HERO registering 77 designs in year 2013-14 and filing of 15 patents.
Honda Motorcycle & Scooter India (HMSI) attained the highest domestic market share of 29%,
selling a total of 361,493 units (including exports) during the month, marking a growth of 10.05 %
HMSI’s February 2014 sales stood at 328,468 units.
However, on the motorcycle sales front, even HMSI witnessed a marginal dip of 2.25 percent during
the month, when it sold 139,334 units as compared to 142,549 units during the same month last year.
The scooter segment, however, made up for the slow-down in motorcycle segment with sales rising by
22.13% in February. HMSI sold a total of 208,811 scooters during Feb 2015, as compared to 170,971
units in Feb 2014.
BAJAJ AUTO too was hit by the slow-down in motorcycle demand, selling 216,077 units (including
exports) during February 2015. During the same period last year, sales had been 273,323 units,
marking a decline of 20.94%.
TVS Motor Company grew well, showing a growth of 11.47% YOY with sales of 164,508 units in
domestic market as against 147,580 units in Feb 2014 with the overall growth being driven by the
scooters segment, which grew by 33.15% in February.
TVS’ scooter sales grew by 35.15 percent in February 2015, when it sold 56,750 units (February 2014:
41,990 units). The motorcycle sales for February 2015 stood at 74,292 units, up by 18.37 percent
(February 2014: 62,762 units).
Royal Enfield has recorded domestic market sales of 29,491 motorcycles in February 2015, up 49
percent (February 2014: 19,840). On the export front, it sold 749 bikes, again up 49 percent (February
2014: 503). Domestic and exports combined, it again notched a 49 percent year-on-year growth with
sales of 30,240 units (February 2014: 20,343).
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Indian Automotive Market | FEB 2015
Mahindra Two Wheelers sold a total of 8,591 units during February 2015, down a considerable 53
percent (February 2014: 17,848). Of this, the company’s domestic sales stood at 8,289 units during
the month, while exports stood at 302 units.
Suzuki Motorcycle India registered a 12.81 percent increase in its February 2015 sales of 30,467
units (February 2014: 27,007).
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COMMERCIAL VEHICLES
The commercial vehicle sales numbers for February continued to be positive. The medium and heavy
commercial vehicle (M&HCV) segment that has seen an uptick continues with double-digit growth
and the LCV sector, which has been subdued, seems to be gaining momentum as well.
After January 2015’s flat growth, Tata Motors’ overall domestic CV sales increased 11 percent. The
company sold 26,547 units (February 2014: 23,990). The M&HCV segment continued to perform well
for the company with a 34 percent growth, selling 12,190 units in February 2015 (February 2014:
9,109). Its LCVs continue to decline though the fall is narrowing down to single digits at just 4
percent. In terms of numbers, Tata Motors sold 14,357 LCVs last month (February 2014: 14,881).
Ashok Leyland’s overall sales grew 36 percent with the company selling 10, 762 units. (February2014-7,915 units) The M&HCV segment registered a 48 percent growth selling 8,230 units (February
2014:5,576 units). The LCVs increased by 8 percent with 2,532 units (February 2014: 2,339 units)
VOLVO Eicher registered nine percent growth in the month. In the local market in the 5-tonne and
above category, it sold 2,774 units (February 2014: 2, 531 units).
Mahindra Trucks and Buses recorded a 21 percent increase with sales of company sold 731 units.
(February 2014: 605 units).
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