BSE Index Analysis, Securties , Standard Experts
Sectors Update - Auto Monitor and Banking
Auto Monitor - April Volumes - A Mixed Bag; May Seen Better
Auto volumes in Apr were a mixed bag as HCVs, Cars and FES posted weak numbers, while volumes for LCVs and UVs continued to be strong. 2W volumes were also muted but we expect growth rates to improve post Q1FY13 owing to strong pipeline of new launches. We had earlier indicated April volumes (except LCVs and UVs) would be weak as (a) dispatches in March were higher before excise duty hike and (b) sentiment was weak with most of the OEMs increasing prices to pass on the duty hike. We expect sequential improvement in volumes going forward as the recent 50 bps rate cut will help buoy sentiment. However, uncertainty on fuel price remains a concern.
2Ws: Volumes for Hero, at 0.55 mn units, were up 7% YoY; Bajaj recorded overall volumes of 0.34 mn, up 6% YoY, while motorcycle volumes for TVS declined 2% YoY.
Cars: Maruti volumes at 100,405 (up 3% YoY), marginally below estimates. Volumes for Tata Motors (TAMO) at 18,610 declined 10% YoY due to lower offtake of Nano and Indigo.
CVs/ UVs: TAMOⳊdomestic LCV volumes at 24,818 were up 9% YoY; M&HCV volumes at 9,829 declined 29% YoY. M&MⳠUVs witnessed volumes of 32,111, up 34% YoY.
FES : M&MⳠtractor volumes at 16,797 were down 10% YoY. We expect volumes to remain weak in Q1FY13.
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