Two Wheeler and Three Wheelers
Facing headwinds from declining exports to Nigeria & Egypt, Bajaj Auto‘s exports were down 20% for the quarter and 21.6% for the period April to July. However, overall sales remained flat at 3.3 lakh. Bajaj has provided a Domestic guidance of 25,000 units a month and hopes improvement in sales of its V15 and Platina products.
Royal Enfield reported a 30.8% growth in Domestic Sales while Exports growth stood at 40%. The April to July growth stands at 25.5% with exports growing at 70.2%. Royal Enfield’s current order book stands at 3 months with the current focus on expanding dealer base to C and D cities (currently the company has over 550 dealerships). RE expects an incremental 15-20 bookings each month from these new dealerships.
Backed by ever growing customer demand for Honda 2Wheelers and its additional production capacity unleashed from the fourth plant, Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI) broke its own sales records in July’16. For the first time, Honda 2Wheelers India, monthly sales crossed the 4.5 lac unit milestone!
Mr. Yadvinder Singh Guleria – Senior Vice President, Sales & Marketing, Honda Motorcycle & Scooter India Pvt. Ltd. said, “July has been a historic month for Honda 2Wheelers India. The new capacity of our fourth plant has given us wings to not only grow faster than the industry, but create 4 records in one month. Crossing the 4.5 lac unit sales mark in July’16 and growing at 21% nearly double that of the total 2Wheeler industry in the first 4 months of FY’16-17 gives us more confidence of a bumper festive season ahead.”
Honda’s market share zoomed to all time high of 29.1% in domestic market (+1%) and 27% in total market (+2%) in July’16. Led by Activa – India’s No. 1 selling two-wheeler of 2016, Honda’s automatic scooter sales crossed the 3 lac mark for the first time.
Passenger and Commercial Vehicles
Witnessing a de-growth in the Commercial Vehicle segment due to lower truck rentals, Ashok Leyland reported a 5.1% drop in overall sales. The diesel price cut is set to push down truck transport freight charges and heavy rains have curtailed the operation of the trucking business.
Leading engineering conglomerate Escorts, registered a 10% growth in vehicle sales for the quarter ended Jun 2016 with major hit from International Sales which fell by 50%.
Mr. Rajan Nanda – Chairman of the company said: “The last quarter has shown a welcome upward trend in the market demand. The construction industry is showing signs of improvement and railways are on a healthy track.”
Maruti reported a 13.9% growth in Domestic Sales at 125,778 units. Maruti’s exports stood flat at 11,338 units. This is the company’s highest ever sales in the Domestic market.
The waiting period for Baleno (Diesel variant constituted 20%) now stands at 6-7 months while for Vitara Brezza at an unimaginable 9 months. This comes at a time when the company has a production cap and the Suzuki Gujarat plant is on its way to be commissioned by Q4 this year.
Stalled growth from the ban on registration of diesel vehicles, Toyota’s recently launched Innova Crysta continues to grow with a waiting period of up to 2 months at different locations across the country.
Mr. N. Raja, Director & Sr. Vice President, Sales & Marketing, Toyota Kirloskar Motor said, “We had to shut down production at our Bidadi plant on 30th July on account of Karnataka Bandh in the absence of which our growth would have been more in terms of sales.
Here is quarter ended financial performance of some of these companies:
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