[vc_row][vc_column][vc_column_text css=”.vc_custom_1665391071221{margin-bottom: 6px !important;border-bottom-width: 12px !important;}”]
Indian Automotive Industry Sales Update – September 2022
[/vc_column_text][vc_column_text css=”.vc_custom_1665391197272{border-bottom-width: 1px !important;}”]
The Federation of Automobile Dealers Associations (FADA) recently released the Vehicle Retail Data for September 2022. Auto retail sales in September witnessed a growth of 11% YoY, with all the categories reporting year-on-year growth except for tractor, which registered a decline of 1.5% YoY.
Compared with the pre-pandemic level, the overall auto retail sales continued to be lower by 3.8%. This lag can be primarily attributed to the two-wheelers segment, which continues to be a drag, falling by 14% with respect to September 2019. Unlike other segments, the 2W segment is yet to show any signs of revival in demand as OEMs have raised the prices of two-wheelers by five times in the past year due to rising input costs, resulting in fewer buyers. Apart from the 2W segment, all the other segments: 3W, PV, TRACTOR, and CV, sustained healthy growth, advancing 5.5%, 44.8%, 37%, and 16.9%, respectively, compared to September 2019.
Commenting on how September’22 performed, FADA President, Mr Manish Raj Singhania, said, “Auto Retail for the month of September’22 saw an overall growth of 11%. September witnessed both the inauspicious period of Shrad (a.k.a Pitru Paksha) from 10-25th September and the festive period, which began with Navratri on 26th September. Due to this, the full potential for the month was not realized as it should have been.”
[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_single_image image=”71703″ img_size=”full” alignment=”center” css=”.vc_custom_1665391213562{margin-top: 4px !important;margin-bottom: 4px !important;border-top-width: 3px !important;border-bottom-width: 3px !important;}”][/vc_column][/vc_row][vc_row][vc_column][vc_column_text css=”.vc_custom_1665391287705{border-bottom-width: 1px !important;}”]
2- Wheelers (2W):
Although sales of 2W haven’t risen above its pre-pandemic level, it witnessed a year-on-year growth of 9% in September 2022 against a year-on-year decline of 12% the previous year. Honda Motorcycles & Scooter India Pvt. Ltd. (HMSI), a 100% subsidiary of Honda Motor Company Ltd., Japan, occupied the largest market share of 2W at 28% as of September 2022. Hero MotoCorp Ltd., a listed entity, occupied second place with a market share of 24.6%. Coming in third was TVS Motors Company Ltd., another listed company, occupying a market share of 16.8%. Bajaj Auto Ltd and Royal Enfield (Unit of Eicher Ltd), both listed companies, occupied the fourth and fifth positions with a market share of 10.4% and 5.5%, respectively.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_single_image image=”71704″ img_size=”full” alignment=”center” css=”.vc_custom_1665391313795{border-top-width: 4px !important;border-bottom-width: 4px !important;}”][/vc_column][/vc_row][vc_row][vc_column][vc_column_text css=”.vc_custom_1665391332879{border-bottom-width: 1px !important;}”]
3 – Wheelers (3W):
The three-wheelers segment saw a robust growth of 72% YoY in September 2022 compared to 50% YoY growth the previous year. This segment is witnessing a structural shift from ICE to EV, reflected by the extremely healthy growth rate of e-rickshaws. E-Rickshaw (P) and E-Rickshaw with cart (G) witnessed a year-on-year growth of 126% and 44.5%, respectively. The growing adoption of EVs within the 3W segment can be primarily attributed to the growing availability of 3W-EVs with full-range products and the increasing use of public transport and rickshaw service, among other factors.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_single_image image=”71705″ img_size=”full” alignment=”center” css=”.vc_custom_1665390685965{border-bottom-width: 1px !important;}”][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]
Passenger Vehicles (PV):
The PV segment continued to dash forward, advancing 10% YoY. It has exceeded its pre-Covid sales, registering a growth of 44% when compared to September 2019. Easing semi-conductor supply, new launches, and feature-rich products contributed to PV’s growth. The waiting period for PV typically ranges between 3 months to 24 months, especially for SUVs and compact SUVs, which have become the absolute choices for customers. Among the major OEMs, only Mahindra and Mahindra witnessed a month-on-month increase in sales.
In September 2022, Maruti Suzuki Ltd dominated the PV segment with a market share of 40%. Hyundai Motors and Tata Motors occupied the second and third positions with 15% and 14% market shares, respectively. Coming fourth was Mahindra and Mahindra Limited at 8.6%. Kia Motors ranked fifth, occupying a 7% market share.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_single_image image=”71706″ img_size=”full” alignment=”center” css=”.vc_custom_1665390737393{border-bottom-width: 1px !important;}”][/vc_column][/vc_row][vc_row][vc_column][vc_column_text css=”.vc_custom_1665391351654{border-bottom-width: 1px !important;}”]
Commercial Vehicles (CV):
The CV segment registered a year-on-year growth of 19%, surpassing its pre-Covid level, advancing 16.9% compared to September 2019. Better availability of vehicles, festivities, bulk fleet purchases and the continued push for infrastructure development by the government propelled the growth of this category.
Within the CV segment, growth in sales of Heavy Commercial Vehicles (HCV) outpaced that of Light Commercial Vehicles (LCV) and Medium Commercial Vehicles (MCV). HCV advanced 39.6% YoY, while LCV and MCV registered a year-on-year growth of 14.7% and 6.5%, respectively.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_single_image image=”71707″ img_size=”full” alignment=”center” css=”.vc_custom_1665390797917{border-bottom-width: 1px !important;}”][/vc_column][/vc_row][vc_row][vc_column][vc_column_text css=”.vc_custom_1665391360344{border-bottom-width: 1px !important;}”]
Tractors (TRAC):
Tractor was the only segment which witnessed a year-on-year decline of 1.5%. However, on a month-on-month basis, this segment registered a growth of 6.7% compared to a fall of 17.2% in August 2022. Almost all the tractor OEMs registered growth on a month-on-month basis except for Indo Farm Equipment Limited, which recorded a decline of 34.4%.
Mahindra & Mahindra commanded a market share of 39% in the tractor segment through its subsidiary, Mahindra & Mahindra Limited (Tractor) and Mahindra & Mahindra (Swaraj Division). Tafe Limited occupied second place with a market share of 12.7%, followed by International Tractors Limited with 11.8% of the market share.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_single_image image=”71708″ img_size=”full” alignment=”center”][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]
Short-term Outlook:
October, with 24 days of festive season out of the total 31 days, is expected to post robust growth in sales across all segments. Dealers are anticipating October 2022 to be the best festive season in a decade for the PV segment. With semi-conductor supply continuing to ease, FADA has requested OEMs to match supply as per the demand to boost PV sales. Additionally, the enquiry level in the 2W segment was reported to be showing positive momentum. If the 2W segment, especially entry-level 2W, also performs well, improving its growth to low double digits, the overall auto sale is forecasted to witness higher growth than the festive seasons of 2021 and 2022 but below the festive season of 2019.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_zigzag][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]
Disclosure:
EZ Wealth is a Stock Broker registered with BSE, NSE and MSEI in all the major segments viz. Cash, F&O and CDS segments. EZ Wealth is also a Depository Participant and registered with both the Depositories viz. CDSL and NSDL. Further, EZ Wealth is a SEBI registered Portfolio Manager. EZ Wealth is a step-down subsidiary of Wealth Discovery Securities Pvt. Ltd (referred as ‘WDSPL’ hereafter).
This report is not to be altered, transmitted, reproduced, copied, redistributed, uploaded, published or made available to others, in any form, in whole or in part, for any purpose without prior written permission from EZ Wealth.
The projections and the forecasts described in this report are based on estimates and assumptions and are inherently subject to significant uncertainties and contingencies. Projections and forecasts are necessarily speculative in nature, and it can be expected that one or more of the estimates on which the projections are forecasts were based may not materialize or may vary significantly from actual results and such variations will likely increase over the period of time. The recipients should consider and independently evaluate whether it is suitable for its/ his/ her/their particular circumstances and if necessary, seek professional / financial advice as there is substantial risk of loss. EZ Wealth does not take any responsibility thereof. Any such recipient shall be responsible for conducting his/her/its/their own investigation and analysis of the information contained or referred to in this report and of evaluating the merits and risks involved in securities forming the subject matter of this report. The price and value of the investment referred to in this report and income from them may go up as well as down, and investors may realize profit/loss
This report has been prepared by EZ Wealth and published in accordance with the provisions of Regulation 19 of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014, for use by the recipient as information only and is not for general circulation or public distribution. The solicitation of an offer to buy, purchase or subscribe to any securities, and neither this report nor anything contained therein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. It does not constitute a personal recommendation or take into account the particular investment objective, financial situation or needs of any individual in particular. The research analysts of EZ Wealth have adhered to the code of conduct under Regulation 24 (2) of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. The recipients of this report must make their own investment decisions, based on their own investment objectives, financial situation or needs and other factors. Past performance is not a guide for future performance. Actual results may differ materially from those set forth in the projection. This report has been prepared by EZ Wealth based on the information available in the public domain and other public sources believed to be reliable. Though utmost care has been taken to ensure its accuracy and completeness, no representation or warranty, express or implied is made by EZ Wealth that such information is accurate or complete and/or is independently verified.
The contents of this report represent the assumptions and projections of EZ Wealth and EZ Wealth does not guarantee the accuracy or reliability of any projection, assurances or advice made herein. Nothing in this report constitutes investment, legal, accounting and/or tax advice or representation that any investment or strategy is suitable or appropriate to recipients’ specific circumstances. Since EZ Wealth or its associates are engaged in various financial activities, they might have financial interest or beneficial ownership in various companies including subject company/companies mentioned in the report. EZ Wealth or its associates have not received any compensation for investment any compensation including brokerage services and for products or services other than investment banking or merchant banking from the subject company in the past 12 months. It is confirmed that EZ Wealth or research analyst or its associates have not managed or co-managed public offering of securities for the subject company in the past 12 months.
Research analyst or EZ Wealth or its relatives’/associates’ have no material conflict of interest at the time of publication of this report. Neither research analyst nor EZ Wealth are engaged in market making activity for the subject company. It is confirmed that research analysts do not serve as an officer or director. No material disciplinary action has been taken on EZ Wealth by any regulatory authority impacting Equity Research Analysis activities. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. This information is subject to change, as per applicable law, without any prior notice. EZ Wealth reserves the right to make modifications and alternations to this statement, as may be required, from time to time. Research analyst or EZ Wealth or its actual/beneficiary ownership of 1% depends from case of case. It is also confirmed that research analysts have not received any compensation from the subject company in the past 12 months.
WDSPL registered address: 1206, 12th Floor, Kailash Building K.G. Marg.
Connaught Place New Delhi-110001
Tel No: 91 +11-43444-666 | 91 +11-43444-623 |
Wealth Discovery Securities Pvt Ltd – CIN: U74999DL2010PTC211626
Wealth Discovery Commodity Pvt Ltd – CIN: U74999DL2011PTC213264
SEBI-NSE-INB/F/E231435737,BSE-INB011435733/INF011435833, DP-IN-DP-CDSL-679-2013 SEBI- REG.NO- MCX & NCDEX – INZ000015731
[/vc_column_text][/vc_column][/vc_row]