Auto Sales: How did Maruti, Tata Motors, Hero Moto perform in May 2023?
May turned out to be a somewhat decent month for the major auto players in India. Marked by easing semiconductor worries, the wedding season, gradual revival in rural demand and a slew of new launches, the automakers in general witnessed higher sales from the previous year.
However, how did the companies perform specifically? Which automakers had a relatively better showing: two wheeler or four wheelers? How were the overall passenger vehicle sales of the companies? With a gradual revival in rural demand did companies like Escorts and Ashok Leyland show a rise in their sales? Let’s try and decode!
Indian Auto Sales: May 2023
Tata Motors: Tata Motors recently reported stellar numbers for the March quarter characterized by a first dividend in seven years, highest quarterly operational revenues and a profit of Rs 5,500 crores.
However, the company’s vehicle sales numbers in the month of May came as a disappointment.
Notably, the company’s total sales for May 2023 slowed down by 1.6% from the previous year to 74,973 vehicles. This can be attributed to the 12% yearly decline in sales witnessed in commercial vehicles to 28,989 vehicles.
However, passenger vehicle sales increased by 6% from the previous year to 45,984 vehicles.
In the past year, the Tata Motors share price has jumped by 23.9%.
Maruti: Maruti reported robust growth of 10.3% from the previous year in total sales to 1,78,083 vehicles in the month of May.
The market leader’s utility vehicles segment, which includes notable brands such as Brezza, Ertiga and Grand Vitara) majorly contributed to the overall growth in sales with a figure of 46,243 vehicles, up 64.9% from the previous year.
However, sales of its light commercial vehicles eased by 18.1% from the previous year to 2,888 vehicles. Moreover, weak global cues led to a slowdown in exports as the company exported 26,477 vehicles in May, which denoted a fall of 2.6% from the previous year.
Meanwhile, its key small cars passenger vehicle brands like Alto, S-Presso, Baleno and WagonR among others clocked sales of 84,647 vehicles in May, down 1.5% from the previous year.
In the past year, the Maruti share price has gained 23.3%.
M&M: Multiple vehicles producer Mahindra & Mahindra, popularly known as M&M, reported sales of 61,415 vehicles in the month of May. Growth in its key segment of SUV aided growth although slowdown in Commercial Vehicle sales capped the upside.
M&M’s SUV sales for the month of May came in at 32,883 vehicles, up 23% from the previous year. Moreover, Three Wheeler sales jumped by 61% from the prior year to 5,851 units and Exports increased by 29% yearly to 2,616 units.
Yet, Commercial Vehicle sales decreased by 5.1% from the previous year to 20,062 units.
In the past year, the M&M share price soared by 30.6%.
Hero Moto: Two wheeler giant Hero Moto reported a sales growth of 6.7% from the previous year to 5,19,474 units in the month of May. This exceeded the expectations of the market experts who forecasted a decline of 6%.
The company’s motorcycle sales for the month of May came in at 4,89,336 units, up 8.2% from the prior year. However, scooter sales decreased by 12.5% from the previous year to 30,138 units.
In the past year, the Hero Moto share price gained 11.7%.
Bajaj Auto: Two wheeler major Bajaj Auto’s total sales for the month of May came in at 3,55,148 units, up 29% from the previous year. The sales growth was driven by solid growth witnessed in both of its key segments, namely, Two Wheelers and Commercial Vehicles.
The core Two Wheeler segment reported a 23% yearly growth in sales to 3,07,696 units while Commercial Vehicle sales jumped by an impressive 80% from the prior year to 47,452 units.
Notably, Bajaj Auto in its March quarter results declared a dividend of Rs 140 per share.
In the past year, the Bajaj Auto share price gained by 27.4%.
TVS Motors: In the month of May, TVS Motors reported sales of 3,30,609 units. This marked a growth of 9% from the previous year. The rise was primarily due to its core two wheeler business while the three wheeler segment witnessed a slowdown.
Two Wheeler sales increased by 11% from the previous year to 3,19,295 units. However, the Three Wheeler sales slowed down by 29% from the previous year to 11,314 units.
Notably, the company’s performance for the Jan - Mar ‘23 period was solid as it reported a 49.5% yearly rise in net profits to Rs 410.27 crores.
In the past year, the TVS Motors share price has jumped by 78%.
Ashok Leyland: Leading commercial vehicle manufacturer Ashok Leyland’s sales for the month of May declined by 1% from the previous year to 13,134 units.
The company’s core Trucks business clocked sales of 6,660 units in the month of May, down 3% from the previous year.
Notably, the Light Commercial Vehicle segment also witnessed a slowdown for May with sales at 4,864 units, down 9% from the prior year. However, the Buses segment witnessed a yearly jump of 47% to 1,610 units.
In the past year, the Ashok Leyland share price rose by 4.8%.
Eicher Motors: The Royal Enfield maker had a somewhat mixed month of May.
While domestic sales increased by 32.3% from the previous year to 70,795 units, exports fell by 34% yearly to 6,666 units.
In the past year, the Eicher Motors share price gained 38%.
Escorts Kubota: Escorts Kubota’s tractor sales witnessed a growth of 8.9% from the previous year at 9,167 units.
Domestic sales remained strong in May at 8,704 units, up 13.5% from the previous year. However, exports plunged by 38.6% from the prior year to 463 units.
In the past year, the Escorts Kubota share price gained 36.3%.
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