Companies in the automotive sector: Companies in India’s auto sector are under pressure as sales for the fiscal year ending December 2023 were below par.
According to the performance of Indian listed automobile companies in the last month of 2023 and their sales numbers, major companies like Maruti Suzuki, Mahindra & Mahindra, Ashok Leyland, Eicher Motors, etc. recorded a decrease in
Maruti Suzuki report card: Dec sales drop
On a monthly basis, Maruti Suzuki’s total sales in December 2023 stood at 1,37,551 units, down 1.28% as compared to 1,39,347 units in the same period last year.
The Delhi-based automobile company posted sales of 1,551,292 units during April-December 2023, an increase of 6.89% as compared to 1,451,237 units in the same period last year.
Passenger car sales were the biggest drag on overall progress, with sales of 48,787 units in December 2023, down 28% from 68,421 units sold in the same period last year.
The company’s total export sales were 26,884 units, an increase of 23% year-on-year as of December 2022.
Maruti Suzuki shares traded 0.85 per cent lower at Rs 10,194 on the BSE today.
Auto stocks fall: M&M records decline in exports
Led by trailer stocks, Mahindra & Mahindra Limited shares traded 2.64 per cent lower at Rs 1,658.60.
Total exports in December were 1,819 units, down 41%, while the company’s sales were 19,805 units, down 20% from 24,733 units in the same period last year.
The number of passenger cars increased by 24% in December to 35,174 units, and on an annual basis it increased by 28% to 333,777 units.
However, the company recorded a significant 97% decline in sales of passenger cars and vans in December FY24, with sales of three units compared to 112 units in FY23. On an annual basis, the company recorded sales of 13 passenger cars and passenger vehicles, a decrease of 99% compared to the same period last year, 2009.
Light commercial vehicles (LCVs) also experienced negative growth, with light commercial vehicles under 2 tons decreasing by 6% to 2,849 units, and light commercial vehicles between 2 and 3.5 tons decreasing by 16% compared to 16,170 units in the same period. Sales decreased by 22% to 2,668 units. last year.
Bicycle brakes: Eicher sales decline in December
Gurugram-based Eicher Motors also posted a 7% decline in two-wheeler sales to 63,387 units in December 2023 from 68,400 units last year. Annual sales of models with engine displacements of 350cc and above increased by 11% to 685,059 units.
The number of exported vehicles decreased by 29% from the previous quarter to 6,096 vehicles, and for the year, decreased by 26% to 54,786 vehicles.
Eicher Motors traded 3.48 per cent lower at Rs 3,895 on the BSE today.
Ashok Leyland’s commercial vehicles are struggling due to declining sales volume
Ashok Leyland, a subsidiary of Hinduja Automotive headquartered in Chennai, also saw an increase in cumulative sales, but sales in December 2023 were 15,323 units, compared to 10,000 units sold in the domestic and export business in the same period last year. This was a 10% decrease compared to 4,112 units.
Ashok Leyland’s share price fell 3.20 per cent to Rs 180 on the exchange.
Domestic woes: Tata Motors sales decline in India
Tata Motors’ commercial vehicle sales increased slightly in the country and around the world to 96,526 units, an increase of 1% year-on-year. Total domestic sales increased by 4% to 76,138 units, but commercial vehicle sales decreased by 1% to 32,668 units.
SCV cargo and pickups fell by 14% to 12,734 units in December, and fell 10% on an accounting basis in Q3FY24.
The company’s shares were trading 0.60 per cent lower at Rs 785.75 as of 11:30 am on the BSE.
Sales are strong but stock prices are sluggish: TVS Motors plummets during the day
Chennai-headquartered TVS Motors’ monthly sales rose 25% to 3,01,898 units, with two-wheelers leading the sales momentum, while electric vehicles saw a marginal increase of 1.4% to 11,232 units. .
TVS Motors was trading at an intraday low of 3.3% due to weak December sales.
Foreign bidders are in the red for Bajaj Motors due to sharp decline in exports
Bajaj Auto’s total sales in December 2023 increased by 16% to 326,806 units, while commercial vehicle exports decreased by 2% to 11,256 units despite domestic sales increasing by 41% to 32,549 units. The company was in the red.
Exports of both commercial vehicles and two-wheelers decreased by 17% to 1,224,964 units from April to December 2023 compared to 1,476,535 units in the same period last year.
Shares of Pune-headquartered Bajaj Group’s auto arm were trading 1.79 per cent lower at Rs 6,580.85.
What’s next?
Force Motors traded 0.20 per cent lower at Rs 3,676.95 on the exchanges today despite pending results.
expert opinion
Anurag Singh, Managing Director, Primus Partners, praised the automobile industry for surpassing 4 million vehicle sales.
“We haven’t had any problems in this sector, with 4 million cars sold in the calendar year. You also have to consider the capacity of infrastructure such as roads. (Car companies) are currently the third largest in the world. We’re doing pretty well as an automotive industry, which is a huge accomplishment.”
He added that such numbers are difficult to maintain over a long period of time, and said last month’s economic slowdown “happens almost every year.”
According to HS Bhatia, managing director of Kelwon Electronic Pvt Ltd and manufacturing and marketing partner of South Korean manufacturer DAEWOO India, consumers are waiting for electric vehicles before buying petrol or fuel-based cars. It means.
New incentive schemes like the revised PLI by the Ministry of Heavy Industries will reduce the price of lithium batteries by an estimated 40% from the current 4%, he added.
Both experts agreed that SUV manufacturers account for a larger portion of the profits.
Amit Kumar, CEO and co-founder of RAMP Global, said holiday sales and seasonality may also be contributing to the decline.
“Inventory shortages, soaring vehicle prices, changing consumer preferences, and emphasis on advanced automotive technology (AAT) under the PLI system are all industry-specific factors. Consumer confidence has declined due to recession fears; “This will lead to the postponement of purchases such as cars,” he said.
Kumar asserted that the long-term outlook for the Indian automobile industry remains positive due to factors such as rising disposable income, increased urbanization and government push through various schemes and programs including PLI.