The first two weeks of January were subdued. There were signs of growth after Pongal and Sankranti festivals but these were still early days. As the cash supply gradually increases and Rabi crop plantation also improves, sentiments will change for the better. By February or March growth will come back. The Budget may also help growth depending on the measures taken by the government.
In Q4 stability will come slowly. The industry is expected to stabilise itself by January or early February. The results will be reflected by February-end or early March.
We will be launching a host of new products in the scooter as well as motorcycle segments during 2017-18
On the BMW venture front there will be no delay in launching vehicles. They are expected to be out in 2017.
Capital Expenditure – For 2017-18 this would be Rs. 300-350 crore against Rs. 400 crore in FY16-17. This is mostly for enhancing capacity and new model launches.
Here are the some of the points from the earnings call:
Cash proportion of sales – 40% of the sales is financed while 40% is based on cash mode which is dominated by the rural areas.
Price hike in early January stood at Rs. 200 to Rs. 700 across various models.
Investment in Indonesian market stood at Rs. 30 crore for 3Q whereas for 4Q another Rs. 24 crore investment would be made. FY16-17 capex stood at Rs. 400 crore.
Bharat Stage III to Bharat Stage IV migration – price increase in the range of Rs. 500 to Rs. 1800 across range of products. While government notification has barred production of BS3 products, sales are them can still be made beyond April, 2017. TVS has already started production of vehicles in complaint to BS4 norms.
BMW Joint Venture dispatches – the BMW G310R with a 313 cc engine capacity was launched by BMW while TVS awaits the launch in India. The company did not provide any launch date for the model in India. (More here).
TVS Motors reported sales of 207,059 units in January, 2017 against 208,485 units during the same time last year.
Domestic two-wheeler sales at 172,101 units against 172,162 units
Motorcycles registered sales of 60,275 units against 83,374 units
Scooters registered sales of 62,552 units against 70,049 units
Two Wheeler sales stood at 202,209 units against 201,233 units
Three wheeler sales stood at 4,850 units against 7,252 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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