This report analysis monthly auto sales figure of month June'19

1. AUTO-SALES DATA ANALYSIS
June-2019

2.  The Indian automobile industry continues to reel under pressure in June, third straight month of the FY2019-20, with the overall
domestic sales falling 12.34% to 19,97,952 units in June’19, the latest SIAM (Society of Indian Automobile Manufacturers) data
showed. A total of 22,79,186 units were sold in June’18. A drop of 8.62% was witnessed during May, while the numbers had fallen
15.93 % in April.
 Domestic Passenger Vehicle (PV) sales declined by 17.54% basis, 2W sales declined by 11.69%, MHCV Sale declined 16.3% , and
Commercial Vehicles were down by 12.27% in the same period a year ago.
 The primary reason behind the low consumer sentiment is the hike in vehicle prices amid strict safety regulations, lingering impact of
increased axle norms, delay in monsoon, liquidity constraints and muted performance of core sectors such as infrastructure and
mining. These factors have dialed down demand in both urban and rural areas, because of dearth in demand, dealerships of the
automakers are soaring with unsold cars and bikes that forced big OEMs to shutdown their plants. All OEMs registered YoY decline in
June’19 which is anyways a seasonally weak month owing to vacations and school/college fees eating into majority of consumers’
household budget.
India Auto Sales Jun’19..Weakness Continues..
Car Registrations in India (In Units)

3. Passenger Vehicles Sales Analysis
Companies June 2019 May 2019
Growth in
MoM%
June 2018
Growth in
YoY%
Maruti Suzuki 124,708 134,641 (7.4) 144,981 (14.0)
M&M - PV 21,902 22,973 (4.7) 21,603 1.4
Tata Motors PV 13,351 10,900 22.5 18,213 (26.7)
 This was the 8th consecutive drop in monthly passenger vehicle sales. Sales have fallen in 11 of the
12 months since July 2018. PVs sales in India continued its downward as automakers curbed factory
dispatches to control inventory at their respective dealerships.
 Hike in insurance prices is also one of the reasons which is also responsible for the downfalls but we
could have countered the same with other strategies.
 Maruti Suzuki India reported fall in sales due to maintenance shutdown and subdued demand.
Company’s Vans segment sales declined as they discontinued Omni in April’19. Maruti sold 1,830
Baleno to Toyota, which the latter rebadges and sells as Glanza.
 Tata Motors sales decline largely impacted due to the liquidity crunch, higher interest rates and
difficulty in funding from the NBFCs.

4. Two Wheelers Sales Analysis
Companies June 2019 May 2019
Growth in
MoM%
June 2018
Growth in
YoY%
Hero Moto Corp 616,526 652,028 (5.4) 706,242 (12.7)
Bajaj Auto 404,624 419,235 (3.5) 404,429 0.0
TVS Motor Company 297,102 307,106 (3.3) 313,614 (5.3)
Royal Enfield 58,339 62,371 (6.5) 74,477 (21.7)
 Sales of motorcycles declined 9.5% to more than 1.08 million unit, as scooter sales fell 14.8% to
512,626 units affected by high channel inventory, derive close to half of their sales from rural areas
and experienced fall in sales volume on account of rural slowdown.
 Overall Bajaj Auto’s sales were flat although 4% YoY growth in overall sales on the back of strong
exports with the help of new launches.
 For TVS Motor Company, 2W sales declined largely driven by sales fell in moped.
 Royal Enfield posted a decline led by 25% YoY decline in the 350cc segment.
 Hero sales decline was higher than estimates and among its mainstream competitors, HMCL saw the
steepest decline due to higher rural contribution.

5. Commercial Vehicles Sales Analysis
Companies June 2019 May 2019
Growth in
MoM%
June 2018
Growth in
YoY%
Tata Motors CV 35,722 29,329 21.8 38,560 (7.4)
M&M - CV 20,645 22,448 (8.0) 23,552 (12.3)
Ashok Leyland 12,810 13,172 (2.7) 15,792 (18.9)
VE Commercial Vehicles 4,502 4,750 (5.2) 6,315 (28.7)
SML Isuzu 1,214 1,689 (28.1) 1,564 (22.4)
Atul Auto 3,704 3,464 6.9 3,847 (3.7)
 CV sales fell sharply, during the month, largely impacted by the drop in cargo vehicle sales with the
excess carrying capacity created post axle load norm revision.
 Operators are facing viability challenges due to low freight availability and falling freight rates, delayed
payments to contractors and lack of new projects.
 TATA MOTORS CV demand has been led by the growth in e-commerce and intra city logistics. The new
products introduced in the fast growing 15-16 Ton segment and CNG products have been well
accepted by the customers. The order book for Winger ambulances continues to be strong and the
introduction of the new 15 seats Winger is giving a boost to our sales in this segment.

6. Tractor Segment Sales Analysis
In Units June 2019 June 2018
Growth in
MoM%
May 2019
Growth in
YoY%
M&M 33,094 24,704 34.0 40,529 (18.3)
Escorts 8,960 6,827 31.2 9,983 (10.2)
 Tractor sales were better than our estimates on MoM basis but maintained its negative trend on
YoY on account of demand slowdown, delay in monsoon and low water reservoir levels in
Western and Southern India which are key markets for M&M.
 Despite marginal de-stocking, overall inventory level remains higher.

7. PVs Market Shares figures for June’19

8. Four-wheelers: Sales Volume Analysis
MARUTI SUZUKI Volume Analysis
In Units June 2019 May 2019
Growth in
MoM%
June 2018
Growth in
YoY%
Total Sales 124,708 134,641 -7.4 144,981 -14.0
Mini 5119 16394 14.3 29,381 -36.2
Compact 13188 70,135 -10.3 71,570 -12.1
Sal to Other OEMs 11075 2,302 -20.5 0 NA
Mid-Size 445 3,592 -35.4 1,576 47.1
LCVs 2,017 2,232 -9.6 1,626 24.0
UVs 17,797 19,152 -7.1 19,321 -7.9
Vans 9,265 11,745 -21.1 12,185 -24.0
Exports 9,847 9,089 8.3 9,319 5.7
ASHOK LEYLAND Sales analysis
In Units June 2019 May 2019
Growth in
MoM%
June 2018
Growth in
YoY%
Total sales 12,810 13,172 -2.7 15,792 -18.9
HCVs 8,427 8,946 -5.8 11,258 -25.1
LCVs 4,383 4,226 3.7 4,534 -3.3

9. MAHINDRA & MAHINDRA Volume Analysis
In Units
June
2019
May
2019
Growth
in
MoM%
June
2018
Growth
in
YoY%
Total sales 75,641 70,125 7.9 85,684 -11.7
Passenger UVs 17,723 19,524 -9.2 16,408 8
Cars & Vans 1,103 1,084 1.8 1,729 -36.2
3-wheelers 4,251 4,569 -7 4,323 -1.7
LCVs 15,689 17,242 -9 18,121 -13.4
M&HCV 705 637 10.7 1,108 -36.4
Automotive
exports
3,076 2,365 30.1 3,466 -11.3
Tractors 33,094 24,704 34 40,529 -18.3
TATAMOTORS Sales analysis
In Units
June
2019
May
2019
Growth
in
MoM%
June
2018
Growth
in
YoY%
Total sales 51,774 41,792 23.9 62,019 -16.5
HCVs 14,406 11,878 21.3 17,456 -17.5
LCVs 23,915 18,925 26.4 26,147 -8.5
Cars 7,591 4,194 81 12,372 -38.6
UVs 5,862 6,795 -13.7 6,044 -3
ESCORTS Sales analysis
In Units
June
2019
May
2019
Growth
in
MoM%
June
2018
Growth
in
YoY%
Total sales 8,960 6,827 31.2 9,983 -10.2
Domestic 8,648 6,488 33.3 9,758 -11.4
Exports 312 339 -8 225 38.7

10. Two-wheelers: Sales analysis
BAJAJ AUTO Sales analysis
In Units June 2019 May 2019
Growth in
MoM%
June 2018
Growth in
YoY%
Total Sales 404,624 419,235 -3.5 404,429 0
Total Two-Wheelers 351,291 365,068 -3.8 337,752 4
Total Three-Wheelers 53,333 54,167 -1.5 66,677 -20
HEROMOTOCORP Sales analysis
In Units June 2019 May 2019
Growth in
MoM%
June 2018
Growth in
YoY%
Total Sales 616,526 652,028 -5.4 706,242 -12.7

11. TVS MOTORS Sales analysis
In Units June, 2019 May, 2019
Growth in
MoM%
June, 2018
Growth in
YoY%
Total sales 297,102 307,106 -3.3 313,614 -5.3
Motorcycles 131,331 142,787 -8 128,825 1.9
Scooters 99,007 98,202 0.8 102,763 -3.7
Mopeds 53,123 53,337 -0.4 69,613 -23.7
Three-wheelers 13,641 12,780 6.7 12,413 9.9
Total Two-wheelers 283,461 294,326 -3.7 301,201 -5.9
ROYAL ENFIELD Sales analysis
In Units June, 2019 May, 2019
Growth in
MoM%
June, 2018
Growth in
YoY%
Total sales 58,339 62,371 -6.5 74,477 -21.7
Upto 350cc 51,678 53,545 -3.5 68,769 -24.9
Above 350cc 6,661 8,826 -24.5 5,708 16.7

12. Disclaimer
Prepared By:
Research Associate: Nawanit Kumar Pandey
Email ID: nawanitpandey@adroitfinancial.com
Phone Number: 0120-4550300*270/388
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