Shavi Tech World

Tough time keeps for automobile businesses

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Challenging times retain for automobile majors, with their income numbers for February declining. The decline is due to subdued patron demand sentiment because of slowing business output, tight liquidity, non-availability of retail finance, better interest fee, and moderate financial pastime beforehand of general elections scheduled for April-May.

Commercial car (CV) section numbers had been mixed for players on this space. The section continues to face challenges due to the impact of new axle load norms, coupled with liquidity crunch and non-availability of retail finance. Tractor section becomes vulnerable in February at the again of a higher base of last yr and subdued farm sentiment.

Three-wheeler (3W) sales were mixed because of an utterly high base of the remaining year. Two-wheeler volumes have been additionally blended for players in this area. Passenger vehicle (PV) income continues to disappoint due to a higher fee of ownership, the upper base of closing 12 months and damaging macro factors.

Commercial car – continues to be under pressure
The negative impact of latest axle load norms and macro demanding situations, led by using liquidity problems, financing problems, growing interest rates and the slowdown in the monetary pastime, have dampened patron demand sentiment for CVs. The lengthy-time period outlook, but, maintains to remain wonderful because of focus on construction and infrastructure and increase in mining interest.

Company-sensible, Tata Motors registered a 9 percent yr-on-yr (YoY) decline in CV quantity, led through 17.3 percentage and 0.7 percent fall in the medium and heavy business car (M&HCV) and light commercial automobile (LCV) segments. Volvo Eicher Commercial Vehicles (VECV) additionally witnessed a 6.7 percent drop. Ashok Leyland and Mahindra & Mahindra (M&M) published flat boom in its month-to-month volumes because of decline in M&HCV section volumes, however, changed into partly offset through an upward push in LCV volumes.

Cars phase: New product launches to help

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Car section continues to show a weak point for the eight consecutive months. Increase inside the total price possession led by growing hobby rate and mandatory long-term coverage have dampened customer sentiment. Companies in this space have posted a muted/decline in PV extent for February, even though new product launches helped.

The market leader, Maruti, posted a 3. Three percentage decline in monthly volumes, even as Tata Motors’ grew a percentage. The control of Tata Motors is expecting robust months ahead at the lower back of a release of its new SUV, Tata Harrier, in January. M&M published an increase of 16.6 percentage in its monthly volume, pushed through its newly launched XUV300 version.

Two-wheeler (2W) phase: Bajaj Auto continues to do well
In the two-wheeler area, Bajaj Auto led the percent with a growth of 6.3 percentage in February, driven by way of aggressive pricing moves taken with the aid of the management in its access-stage section. The impact of which is subsiding on marketplace chief Hero MotoCorp, which witnessed a two percent decline in its month-to-month income. Eicher Motors keeps supplying disappointing numbers, posting a drop of 14.Three percentage. TVS Motor Company introduced a year-on-yr boom of two percent on the returned of growth accruing from motorcycles (8.2 percent).

Three-wheeler (3W): Mixed displaying
The general 3W market published blended numbers in February. TVS posted a robust growth (forty-one .2 percent), and M&M added 10 percent growth. Bajaj Auto, the leader within the space, noticed an 8.7 percent decline because of a high base of the closing year.

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Tractors: Gaining on tremendous rural sentiment
Tractor phase continues to be blended with Escorts posting a YoY growth of nine. Nine percent as against a decline of eight.1 percentage for M&M. The M&M management expects high-quality sentiment on the again of recently done direct gain transfer to marginal farmers and different seasoned-rural tasks by way of the authorities.

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Exports: Mixed sentiment
The export market became mixed for groups. Maruti and Tata Motors published a decline in their February income numbers, whereas M&M, Bajaj Auto, TVS, Eicher, and Escorts noticed an increase in February. Tata Motors’ control said the decline changed into because of congestion at the Bangladesh border, new regulations and political uncertainty in Sri Lanka and hunch in the Middle East automobile marketplace.

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