Being the last month of the Indian financial year, March usually sees a spike in demand. No surprise that last month’s 2.43 lakh shipments were the highest in 12 months. Still this demand was 37,000 cars lower than March 2012. As per the auto dealers, the showroom traffic has come down drastically and enquiry conversions are also not taking place despite various schemes being offered. This has been observed both in urban markets as well as in smaller towns and rural areas. Tata Motors sales declined by 27.6% YoY to 72,172 units on YoY basis. While the country’s largest car maker, Maruti Suzuki reported 4.8% decline in March 2013 sales. Over the same period M&M continued its stellar performance (10.4% YoY) led by growth in the PV segment. The two wheeler segment also registered a decline in volume with Hero MotoCorp and Bajaj auto both reporting a decline of 11.36% and 10% on a YoY basis.
Outlook – Growth expected to be back ended in FY14
Going forward we expect the soft industry trend to continue given the political imbroglio, no sight of industrial cycle picking up and sharp reduction in global economic activity. However with interest rates expect to decline we could see some pick up in volume growth towards the latter part of the fiscal.
Read full report : Auto Monthly Update March 2013