Mixed Auto Sales in September

Dealer dispatches were again mixed this month with strong dispatches in two wheelers (especially Hero Honda) and relatively weaker trends were visible in the passenger car segment. Two-wheeler dispatches appear strong, aided by strong rural demand, whereas in cars, retail demand continues to be very weak.

Hero Honda, Bajaj Auto & TVs Motors:
Hero Honda dealer dispatches were up 23% YoY. Bajaj’s domestic sales declined 4% YoY, whilst TVS’ domestic sales were very strong up 17% YoY. Hero Honda continues to build inventory levels ahead of the festive season to match demand

Maruti Suzuki:
Domestic sales were up 3% Y/Y driven by strong sales of Swift and Dezire volumes and increase in inventory levels at the dealer end ahead of the festive season in Oct-Nov. Swift sales were up 31% Y/Y. A2 segment declined by 8% Y/Y. Maruti is waiting for the India Babus to get their accumulated Pay Check on Hand so that they can re-launch their Wheels of India marketing campaign again.

Mahindra & Mahindra:
Sept sales rose 17% YoY; driven by strong Utility Vehicles sales (+31% YoY) aided by strong sales of Non-Scorpio segment (+46% Y/Y) which offset weak Scorpio sales (-13% Y/Y). Tractor sales declined by 7% Y/Y.