June Auto Sales: How did Maruti, Tata Motors, Bajaj Auto and M&M perform?

India’s automobile industry reported mixed numbers during the quarter ending June 2023, with SUV manufacturers gaining market share with Mahindra & Mahindra (M&M) leading the PV segment amid a significant surge in SUV sales, while weakening exports dented sales for a select set of automakers.

Challenges like elevated interest rates, the upcoming monsoon season and weak exports pushed other manufacturers such as Maruti Suzuki, TVS and Tata Motors to post a mild rise in their sales.

The Nifty Auto index, a stock index comprising of all listed automakers on the NSE, eased about 0.5% for two consecutive sessions on July 3 and Jul 4, 2023.

June Auto Sales: Snapshot

What about the individual performance of these companies? Which automakers fared better: two-wheeler or four-wheeler manufacturers? How did the overall passenger vehicle sales for these companies look? Did Escorts and Ashok Leyland experience a rise in sales with the gradual recovery of rural demand? Let's unravel these questions and try to understand the situation better.

Mahindra and Mahindra (M&M) Sales: 

M&M Ltd.'s passenger vehicle dispatches to dealerships jumped 21% to 32,588 units in June as demand for SUVs remained strong.

Sales for 3-wheelers soared 59% to 6,377 units, showing strong market growth. Medium light commercial vehicle sales also grew slightly, rising 2% to 16,735 units. However, small light commercial vehicles saw a 10% sales drop, settling at 3,063 units.

Maruti Suzuki Sales:

 Maruti Suzuki India Ltd. saw a 2.3% year-on-year increase in total sales of 1.59 lakh units in June. Strong sales in the utility vehicle category, driven by new launches, contributed to this growth.

Key sales highlights include a 5.8% growth in domestic sales, totaling 1.40 lakh units, while exports declined by 17% to 19,770 units. Notably, sales of utility vehicles surged by 130% to 43,404 units, while the mini and compact segment experienced a decline of 14.8% to 78,525 units.

TVS Motors Sales: 

TVS Motor Co Ltd. sold 4% more two-wheelers this June compared to last year, with a total of 3.04 lakh units sold, thanks to strong local sales and the launch of fresh 2-wheeler models.

Year-over-year sales figures show a rise in the domestic market. Total domestic sales grew 3% to 3.16 lakh units. Particularly, domestic two-wheeler sales saw a notable increase, rising 22% to 2.36 lakh units.

Bajaj Auto's Sales:

In June, Bajaj Auto experienced a 2% drop in sales, selling 3.41 lakh units, due to persistently weak demand in international markets.

Year-over-year sales snapshots depict varied performance in different sectors. Total two-wheeler sales experienced a decline of 7% to 2.94 lakh units. However, domestic two-wheeler sales rose significantly by 33% to 1.66 lakh units. Commercial vehicle sales also showed strong growth, increasing 52% to 47,332 units.

Ashok Leyland’s Sales: 

Ashok Leyland Ltd.'s deliveries to dealerships saw a 5% year-on-year increase in June, reaching 15,221 units, driven by a near doubling in bus sales.

Sales highlights for the year show a 7% growth in domestic sales at 14,363 units. Light commercial vehicle sales remained steady at 5,089 units. Meanwhile, sales of medium and heavy commercial vehicles experienced a rise of 10% to 9,274 units.

Hero MotoCorp Sales: 

Hero MotoCorp Ltd. saw a nearly 10% year-on-year drop in deliveries to dealerships in June, with 4.37 lakh units dispatched, falling short of growth predictions for the month. 
Key sales highlights include an 8.7% decrease in domestic sales to 4.23 lakh units, and a 12.3% decline in motorcycle sales to 4.04 lakh units. However, scooter sales experienced a robust growth of 38.7%, reaching 32,519 units.

Tata Motors Sales: 

Tata Motors Ltd.'s overall wholesale sales in June rose 1% year-on-year to 80,383 units, despite a slump in smaller commercial vehicle dispatches.

The company saw a 19% decline in intermediate, light and medium commercial vehicle sales and a 16% fall in cargo and pick-up vehicle dispatches. 

However, commercial vehicle sales fell by a lesser 8% to 34,314 units, while heavy commercial vehicle sales grew 19% to 9,625 units. Passenger vehicle sales increased by 5% to 47,359 units, and electric vehicle sales more than doubled, reaching 7,025 units.

Eicher Motors Sales: 

Eicher Motors Ltd. witnessed a notable 26% increase in total motorcycle sales, reaching 77,109 units, despite a decline in dispatches of higher-end vehicles. 

Sales highlights indicate a significant growth of 36% led by Royal Enfield. Models with engine capacity up to 350cc, totaled 68,664 units. However, sales of models with engine capacity exceeding 350cc experienced a decline of 23%, amounting to 8,445 units. Additionally, exports declined by 14% to 9,614 units.

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