Highlights:
– A disappointing set of February sales numbers through car majors throughout all segments
– New axle load norms, tight liquidity, and non-availability of finance weigh on business automobile manufacturers
– New product launches aiding passenger vehicle and -wheeler income

Challenging times keep for vehicle majors, with their income numbers for February declining. The decline is due to subdued purchaser demand sentiment as a result of slowing economic output, tight liquidity, non-availability of retail finance, better interest price and slight economic hobby in advance of popular elections scheduled for April-May.

Commercial automobile (CV) phase numbers were mixed for gamers on this space. The segment maintains to stand demanding situations because of the effect of new axle load norms, coupled with liquidity crunch and non-availability of retail finance. Tractor segment became weak in February at the back of a better base of closing yr and subdued farm sentiment.

Three-wheeler (3W) income was combined because of the excessive base of ultimate 12 months. Two-wheeler volumes were additionally combined for players on this area. Passenger automobile (PV) sales preserve to disappoint due to the better value of possession, the high base of remaining yr and unfavorable macro factors.

Commercial automobile – continues to be underneath the pressure
A negative impact of latest axle load norms and macro demanding situations, led by liquidity issues, financing issues, growing interest costs and a slowdown in monetary activity, have dampened client demand sentiment for CVs. The lengthy-time period outlook, but, continues to stay advantageous due to cognizance on production and infrastructure and a boom in mining activity.

Company-sensible, Tata Motors registered a 9 percent 12 months-on-12 months (YoY) decline in CV volume, led through 17. Three percent and 0.7 percentage fall in the medium and heavy commercial vehicle (M&HCV) and mild industrial automobile (LCV) segments. Volvo Eicher Commercial Vehicles (VECV) also witnessed a 6.7 percent drop. Ashok Leyland and Mahindra & Mahindra (M&M) published flat growth in its monthly volumes because of decline in M&HCV phase volumes but became partially offset using upward thrust in LCV volumes.

Cars phase: New product launches to assist
Car section keeps showing a weak point for the eight consecutive months. Increase within the overall value ownership led by way of growing interest fee and essential long-time period coverage have dampened patron sentiment. Companies on this space have posted a muted/decline in PV quantity for February, even though new product launches helped.

Market chief, Maruti, published a 3. Three percentage decline in month-to-month volumes, at the same time as Tata Motors’, grew a percentage. The control of Tata Motors is anticipating sturdy months ahead at the lower back of a release of its new SUV, Tata Harrier, in January. M&M published a boom of 16.6 percentage in its month-to-month volume, pushed using its newly released XUV300 model.

Two-wheeler (2W) segment: Bajaj Auto maintains to do properly
In the 2-wheeler space, Bajaj Auto led the percent with an increase of 6. Three percent in February pushed with the aid of aggressive pricing moves taken by way of the control in its access-stage segment. The impact of that’s subsiding on marketplace chief Hero MotoCorp, which witnessed a two percent decline in its month-to-month income. Eicher Motors keeps supplying disappointing numbers, posting a decline of 14.3 percent. TVS Motor Company announced a year-on-yr boom of two percent on the lower back of increase accruing from bikes (eight.2 percentage).

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