Two-wheelers (2W): Premium segment shipments overtake entry-level segment

– Hero MotoCorp (Hero) reported sales of approximately 486,000 units, down 3% year-on-year. Scooters outperformed motorcycles as the segment grew by around 410% versus -9% decrease for the latter). Overall domestic sales declined 4% year-on-year while exports were up about 34% year-on-year.

– TVS Motors (TVSM) grew 31% year-on-year to ~ 307k units (up 13% MoM). Domestic sales increased 26% year-on-year to ~ 206,000 units while exports increased 43% to 101,000 units. At the segment level, 2W sales increased 34% to ~ 295k units and 3W sales decreased 13% year-on-year to ~ 12.5k units largely due to lack of audience mobility. On a sub-segment basis, motorcycles and scooters grew 45% / 36% yoy to 137,000 and 98,000 units, respectively, while mopeds grew 11% yoy to 59 000 units.

– Royal Enfield reported 8% year-on-year growth to ~ 69,000 units with new product launches (eg Meteor) likely to drive growth in FY22. Motorcycle sales in the 350cc segment increased 9% year-on-year to ~ 64,000 units while the> 350cc segment increased 7% to ~ 4.6,000 units. Exports grew 103% to 4.5k units.

Passenger vehicles (PV): the UV space stimulates growth but also more competition

– Maruti Suzuki (Maruti) recorded ~ 4% year-on-year growth to ~ 161k units. The mini-vehicle segment registered a marginal 3% year-on-year decline to ~ 25,000 units, while the compact segment also declined ~ 9% to ~ 77,000 units. UV segment shipments increased by about 45% year-on-year to around 24,000 units, while shipments to Toyota increased 154% to 5.7,000 units (likely due to the Brezza variant – launch of the Urban Cruiser). Domestic sales (Ex-Commercial and Toyota shipments) were -1% year-over-year to 139,000 units. Light commercial vehicle shipments increased by about 50%. Exports increased by 29%.

– Mahindra & Mahindra (M&M) volumes grew 4% year-on-year to ~ 21,000 units, with the UV segment increasing 5% year-on-year to 20.5,000 units. Growth in the UV segment remains below the market, possibly due to supply issues and the lack of better competitive performance in compact SUVs. New Thar continues to show healthy growth.

– Tata Motors posted the second highest volume growth among all PV OEMs with 94% year-on-year growth to around 27,000 units, maintaining its position as the third largest player as its key models like Altroz ​​and Nexon continue to drive growth. The company unveiled its new premium 7-seater SUV under the Safari brand.

– Hyundai posted 16% year-on-year growth in domestic volumes to 52,000 units while exports declined 19% year-on-year to 8.1,000 units. The company is seeing strong sales of the recently launched i20, second-generation Creta and Venue iMT models.

– Kia Motors grew 27% year-on-year to ~ 19,000 units. The recently launched Sonet compact SUV continues to drive sales.

– MG Motors’ Hector, launched July 19, and the recently launched Gloster are growing steadily to reach sales of 3.6,000 units (up 15% year-on-year).

– Toyota’s volumes increased 92% year-on-year to ~ 11.1k units. The launch of its Urban Cruiser Compact SUV (rebadged version of the Maruti Brezza SUV) on September 20 helped sales.

Our Take: Releasing the Wholesale Campaign to Capture Year-End Sales Before Sticker Prices Rise, Jan. 21 shipments eased due to a combination of slowing demand and supply chain issues. Rising commodity prices in Q1CY21 in the wake of rising input costs should contain consumer confidence. Reviving urban demand could be the key.

VCs: M & HCVs experience sequential improvement even as light commercial vehicles continue to grow well; rural demand continues to support tractors

– Ashok Leyland’s domestic GC volumes increased 14% year-on-year to ~ 12.4k units, with M & HCV experiencing a 2% year-on-year decline to ~ 6.8k units. Domestic light commercial vehicles experienced strong growth of 42% year-on-year to ~ 5.5k units. The launch of a new platform on the light commercial vehicle side potentially contributes to the expansion of Ashok Leyland’s market share. However, exports fell about 16% year-on-year to 232 units.

– Volumes in the CV segment of Eicher Motors increased by 2% year-on-year to 5.5,000 units.

– Escort tractor volumes increased sharply with growth of around 49% year-on-year to around 9,000 units. Domestic volumes improved 46% year-on-year to ~ 8.5k units while exports stood at 511 units. Volumes were supported by allaying supply chain concerns as well as strong expectations for a healthy winter harvest with increased cash flow to farmers due to better fulfillment of crop prices.

– Mahindra & Mahindra (M&M) HP segment volumes were down 41% year-on-year to ~ 13.4k units while 3.5T LCVs and M & HCVs were down 46%. Volumes in the 3W segment fell sharply by 65% ​​to 2,841 units. Tractor shipments grew 50% year-on-year to around 23,000 units, with domestic sales increasing 50% to around 22.3,000 units. Increasing the area of ​​rabi, investing in rural development programs and supplying demand after rabi purchase will be key controls during the next rabi season.

– Tata Motors domestic HP segment volumes decreased 2% year-on-year to ~ 33,000 units. M & HCV sales increased approximately 22% year-on-year to approximately 13.3,000 units. Light commercial vehicle volumes were down about 13% year-on-year to about 17.4,000 units. Overall export volumes decreased 12% year-on-year to 2.2k units.