We bring you our monthly report on the automobile sales for the month of January, 2017. You can catch all the January Sales here. You can also find all the coverage in relation to the automobile sector here.
Here is Bharat Madan, CFO, Escorts sharing his views on the current and future demand as well as demonetization impact:
Things will again start building up for the next season which is mid-February and March which again is expected to be a good season this time
For the industry December is still some sort of stress. Some impact of the sluggishness in the growth is visible, partly impact of whatever the demonetization has temporary effect which is on the industry.
We expect next quarter should show some sort of double digit growth.
January-February will see some sort of growth which will start coming back into the market, so whatever the temporary impact has been there on the market and people are finding ways to really go around that.
10-15% growth range is still possible. Initial 7-8 months growth rate would be about 19-20% level in the industry
Expect a single digit or maybe a higher single digit growth coming into the next year
Tractor industry is a bit of a seasonality because normally December, January, February are low volume months for the industry so October, November, typically are the high festive season months where the volumes are also pretty high.
On the occasion of the founder H P Nanda’s 100th birth anniversary, Amitabh Bachchan endorsed the Escort brand. Here is the complete video released by the company.
The aim of the video was to explain how the identity of the family infuses itself in the business itself and also provide insights into the company. Read more here on what the company’s communication officer Sharad Gupta had to say.
Here is what Shenu Agarwal, Chief Sales & Marketing Officer, Escorts Limited mentioned about the impact of demonetization:
The cash crunch impacted demand and tractor sales in the industry dropped around 14% in November. Sales revived to an extent last month. We expect the market to improve and stabilise by the next harvest season. Monsoon has been good this fiscal, sowing has gone up and prices are holding well. Despite demonetisation, the industry should grow 18-19%.
Escorts reported sales of 3,652 units in January, 2017 against 3,140 units during the same time last year resulting in a growth of 16.3%.
Domestic Sales stood at 3,507 units against 3,089 units
Exports stood at 145 units against 51 units
Note: Sales numbers presented here are manufacturer reported sales numbers i.e. factory dispatches to dealerships. They are NOT retail sales figures to end customers.
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