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

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Auto Sales June 2023

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

Auto CompaniesJune 2022June 2023Growth
Hero MotoCorp484,867436,993-10%
Bajaj Auto347,004340,981-2%
Maruti Suzuki155,857159,4182.3%
Tata Motors79,60680,3831%
Ashok Leyland13,46914,3636.6%

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.

This is not investment advice. Investments in the securities market are subject to market risk, read all the related documents carefully before investing. Past performance is not indicative of future returns.