vehicle sales Archives

Here are some of the major updates that could move the markets tomorrow:

Hero MotoCorp to partner with Zero Motorcycle for premium electric motorcycles

Hero MotoCorp have reached an agreement with California-based Zero Motorcycles to co-develop premium electric motorcycles. The companies intend to combine the expertise of Zero in developing powertrains and electric motorcycles with the scale of manufacturing, sourcing and marketing of Hero MotoCorp. In Sept 2022, the board of Hero MotoCorp approved an equity investment of up to $60 million in Zero Motorcycles.

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Olectra Greentech bags order for 550 e-buses from TSRTC

Olectra Greentech Ltd has received an order for 550 pure electric buses from the Telangana State Road Transport Corporation (TSRTC). The order is to supply 50 standard-floor 12-metre intercity coach e-buses and 500 low-floor 12-metre intracity e-buses. The 50 intercity coach e-buses will ply between Hyderabad in Telangana and Vijayawada in Andhra Pradesh.

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NTPC records 12% growth in electricity generation in April-Feb

NTPC Ltd has registered nearly 12% YoY growth in electricity generation to 364.2 billion units in the April-February period of FY23. The company’s captive coal production stood at 2.6 million metric tonnes (MMT) and despatch at 2.5 MMT, registering a growth of 80% and 87%, respectively. NTPC continues to demonstrate an increasing trend in coal production from its captive mines.

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Auto components industry to grow 10-15% in FY24: ACMA

India’s auto components industry is expected to grow by around 10-15% in FY24, said the Automotive Component Manufacturers Association of India (ACMA). This growth will be driven by both domestic and export market demand despite fears of a recession in major markets of the US and Europe. Going forward, the industry is expected to gain from the transition to electric vehicles (EVs) in the developed markets in the West.

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Allcargo Logistics to acquire its partners’ contract logistics business

Allcargo Logistics plans to buy out the contract logistics business of its joint venture partner CCI Integrated Logistics and sell it to the customs clearance segment as a means of consolidating its business. The company bought a controlling stake in CCI in 2016 and subsequently formed the joint venture Avvashya CCI. It now holds over 61% stake and will buy the remaining 38.87% stake from its partners for ₹145 crore.

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Max Estates completes office complex in Noida at ₹420 crore cost

Max Estates has completed an office complex (Max Square) in Noida at a total development cost of ₹420 crore. The company is expecting an annual rental income of about ₹60-70 crore from this project. New York Life Insurance Company has co-invested in this project and holds a 49% stake. Max Estates is part of Max Group’s listed entity Max Ventures & Industries Ltd (MaxVIL).

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Vehicle sales grow 16% in February 2023: FADA

A report from the Federation of Automobile Dealers Associations of India (FADA) revealed that the total registrations across all segments rose 16% year-on-year (YoY) to 17,75,424 in Feb 2023. Total commercial vehicle retail sales in February grew 17% YoY to 79,027 units. Tractor sales rose 14% YoY to 68,988 units last month.

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Domino’s becomes first QSR brand to achieve 20-min guaranteed delivery in Bengaluru

Jubilant FoodWorks Ltd announced the launch of a 20-minute delivery guarantee for Domino’s Pizza in Bengaluru. The fast-food chain now guarantees delivery of fresh and hot pizzas to customers’ doorsteps within just 20 minutes of placing the order. The service will be available across 170 Domino’s Pizza stores across the city.

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ONGC signs pact with TotalEnergies for exploration of deep-water blocks

Oil and Natural Gas Corp (ONGC) has signed an agreement with French major TotalEnergies for the exploration of deep-water blocks. The decision comes as the country wants to quickly monetise its oil and gas resources to reduce its reliance on costly imports. India is the world’s third-biggest oil importer & consumer of oil, and ships over 85% of its oil overseas.

Read more here.

On January 1, 2021, all major automobile companies reported their sales figures for the month of December. Interestingly, the results were far better than expected and automobile manufacturers have ended 2020 on a very positive note. Almost every firm reported a healthy and significant increase in their sales. Let us take a look at important sales figures posted by some of India’s largest automobile manufacturers for the month of December 2020.

Important Sales Figures

Tata Motors Ltd reported a 21% year-on-year (YoY) increase in domestic sales to 53,430 units. The total commercial vehicle sales declined 5% YoY to 29,885 units, which had been mainly due to a drop in the sale of passenger carriers and small commercial vehicles. Car sales rose 84% to 23,545 units. The company stated that it will continue to bring improvements in its supply chain facilities Tata Motors also announced that it will ramp up its production in the coming months to meet the increase in demand.

Eicher Motors Ltd reported that the sales of Royal Enfield motorcycles increased by 37% YoY in December. This was led by an increase in the deliveries of models with engine capacity up to 350 cc. The company’s total sales stood at 68,995 units, compared with 50,416 units in December last year. Its exports rose 82% YoY to 3,503 units

Ashok Leyland Ltd reported an overall sales growth of 14% YoY at 12,762 units in December 2020. The sales of medium and heavy commercial vehicles declined 2% to 6,884 units. Exports rose 14.5% YoY to 905 units.

Mahindra & Mahindra Ltd reported a 10.3% YoY decline in overall auto sales at 35,187 units in December. The company’s commercial vehicle sales saw a decline of 21.1% YoY to 16,795 units in December, as compared to 21,390 units during the same period in 2019. Exports increased by 3% to 2,210 units. The Passenger Vehicles segment (which includes utility vehicles, cars, and vans) sold 16,182 vehicles in December 2020, a growth of 3% over the same period last year. The total tractor sales in December were 22,417 units, as compared to 17,991 units a year ago. The company stated that its overall sales have been affected due to a supply shortage of micro-processors (semiconductors) used in the Electronic Control Unit (ECUs).

Maruti Suzuki India Ltd reported a total sales of 1,60,226 units in December 2020 led by compact vehicles, LCVs, and Vans. This is a growth of 20.2% over the 1,33,296 units sold in the same month last year. Its domestic sales rose 19.5% at 1,50,288 units and exports were up 31.4% at 9,938 units.

Escorts Ltd’s agricultural machinery segment sold 7,733 tractors in December, the highest ever recorded in the month. The automaker registered a growth of 88% YoY against the 4,114 tractors sold in the same month last year. Domestic tractor sales grew 90% YoY at 7,230, while exports were up 63.3% YoY at 503 units.

TVS Motor Company Ltd announced that its December sales have risen by 17.5% at 2,72,084 units, as against 2,31,571 units sold in December 2019. The company’s motorcycle sales grew by 27% YoY at 1,19,051 units and scooter sales stood at 77,705 units.

What Led to the Increase in Sales?

Pent-up demand has been one of the major causes of a healthy increase in sales during December. This refers to a rapid increase in demand for a service or product, usually following a period of subdued or decreased spending. Also, there had been attractive year-end discounts that accelerated the sales of major automobile players’ during December. The offers and discounts offered by these companies during the holiday season would have encouraged the Indian population to purchase vehicles. Another important factor to be noted is that people prefer to own a vehicle for commuting amidst the Covid-19 pandemic. The number of people using public transportation has decreased rapidly.

As we had mentioned earlier, many automobile manufacturers had announced that they would increase the prices of their two-wheelers, passenger vehicles, or commercial vehicles from January 2021. Thus, there could have been an increase in vehicle bookings in December.

Over the past few months, we have also been witnessing a very high increase in the sales of tractors. During the April-November period, tractor sales in India saw a 28.7% YoY growth. Industry experts have stated that this could be attributed to the better availability of finances and increased savings. The high demand could also be a result of the rise in minimum support prices (MSPs) and market-rate realisations. We can see that this increase in demand for tractors has continued in December as well.

However, many companies in the automobile industry have brought attention to the fact that they are not receiving essential parts for their production activities. This has been mainly due to the global shortage of shipping containers. Due to this issue, automakers in India are bracing for a parts shortage and possible production losses over the next 3-4 months.

Automobile manufacturers would soon post their Q3 results in the coming weeks. We would be able to obtain better clarity of their performance then. The shares of these automobile companies could also show a rally in the days to come.