CNX Auto Index weekly report 22 08-2013


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CNX Auto Index weekly report 22 08-2013

  1. 1. Pesented By : GROUP B Akanksha Jain Ankit Jain Kiran Kumar Rathijit Basak Vikas Goswami
  2. 2.  With the GDP growth pegged at 5-5.5%, the lowest in the last decade, shrinking consumer's disposable income and a tepid employment scenario, the situation is likely to remain bleak for the coming year till next year's election.  With rising fuel prices and high interest rates, buying decisions, too, are getting deferred, industry experts say the number of first-time car buyers have shrunk from 34% to 22% in the last one year.  The industry is sitting on a massive overcapacity, with passenger vehicle capacity utilisation pegged at 50-60%. GENERAL SCENARIO…………………..
  3. 3. NEWS AND UPDATES Europe slump forces Tata Motors to mull future of Spanish arm. Tata motors is mulling what to do with its Spanish bus- manufacturing subsidiary Hispano Carrocera, in the wake of the slowdown that has hit automakers in Europe. However the chairman of the company did not provide details on the options the company was taking into consideration.
  4. 4. Tata Motors defers JLR listing on China boost  Indian auto major Tata Motors has decided to defer the listing of its Jaguar Land Rover (JLR) unit on the London Stock Exchange.  It is likely to postponed for 2 years. China to be Tata Motors' biggest revenue driver this fiscal year  In FY14, Tata Motors is likely to earn more revenues from China than any other country or region.  Already, in FY13, China accounted for 23.6% of Tata Motors' global revenues, just a whisker behind India, which brought in 23.9% of its revenues
  5. 5.  JLR's sales in China grew from 17,552 units to 77,144 units in three year, since it set up a National Sales Company there to import and sell cars.  In rupee terms, its China revenues grew from Rs 11,464 crore to Rs 44,565 crore in the same period.  JLR is still a small player in China's luxury vehicle market dominated by Audi, BMW and Mercedes.  In FY13, China overtook UK as the largest single market for JLR, with a contribution of 20.6 percent to overall volumes.  JLR is well on its target to achieve a volume of 100,000 units in China in FY14, up 28 percent Y-o-Y.
  6. 6. Tata Motors global wholesales down 14% in July  A sharp rise in the sales of its luxury Jaguar Land Rover cars failed to offset sluggish passenger and commercial vehicle sales.  Sales of its Jaguar Land Rover brand, which Tata purchased for USD 2.3 billion in 2008, stood at 35,162 in the month, a rise of 31 percent from a year earlier.
  7. 7. Maruti launches WagonR Stingray at a starting price of Rs 4.10 lakh  Maruti sold around 1.3 million units of the WagonR since its launch in December 1999, on an average of about 12,000 units a month.  The launch comes when the auto industry is gearing up to boost sales in the upcoming festive season  the difference between petrol and diesel fuels getting narrower, demand for petrol vehicles has been coming back in recent months.
  8. 8. Passenger vehicle market appears to be falling off the cliff  The Indian passenger vehicle market appears to be falling off the cliff, staring at its first decline in a decade, as its two key growth drivers — utility vehicles and diesel-driven cars — are taxed with increased duties and rising pricing. The passenger vehicle market size has dropped from 2.42 lakh units per month in January 2013 to 1.86 lakh units per month in July 2013.  It is partly because of the extra tax imposed on SUVs; also, due to increasing diesel prices, the UV segment has also come under pressure. In July, for the first time since May 2009, there was a contraction in the UV segment.
  9. 9. Petrol cars overtake diesel cousins in sales after over two years  Sales of petrol cars have overtaken their diesel variants after a gap of about 25 months spurred by a steady rise in the price of diesel, which has shifted consumers' interest from costlier diesel variants to cheaper petrol cars.  Only 42% customers bought diesel cars in the first quarter of this fiscal year compared to around 54% in the corresponding period previous year.  Oil companies have been steadily hiking diesel prices that have decreased the lucrative gap between petrol and diesel variants
  10. 10.  In January, the government allowed state oil firms to raise diesel rates in small doses until retail prices are aligned with international rates, which shifted consumers' interest from diesel to petrol cars.  According to industry data, auto manufacturers posted 12.5% increase in petrol cars sales last month, which happened at a time when automobile sector is facing a sluggish demand. But the fall in the sale of diesel cars is much sharper. Despite the muted market conditions, a positive trend is seen in sales of petrol vehicles last month on the back of rising demand for smaller entry-level cars like Maruti Alto, WagonR andHyundai EON, they said. But, diesel car sales in July for models like Honda Amaze and Maruti Dzire have been dropping in recent months. Consumption of petrol jumped by about 13% in April-June quarter this year while the growth of diesel was only 0.6%
  12. 12. 0 1000 2000 3000 4000 5000 6000 7000 CNX AUTO NIFTY
  13. 13. DATE OPEN CLOSE 12-Aug-2013 4377.35 4384.35 13-Aug-2013 4390.25 4480.60 14-Aug-2013 4522.35 4622.45 16-Aug-2013 4611.25 4512.60 19-Aug-2013 4475.70 4368.55 20-Aug-2013 4321.05 4274.20 21-Aug-2013 4322.00 4210.20