Challenging times hold for vehicle majors, with their income numbers for February declining. The decline is because of subdued patron call for sentiment because of slowing economic output, tight liquidity, non-availability of retail finance, higher hobby price and moderate financial activity ahead of regular elections scheduled for April-May.
Commercial automobile (CV) section numbers were mixed for gamers on this space. The segment continues to face demanding situations due to an effect of latest axle load norms, coupled with liquidity crunch and non-availability of retail finance. Tractor phase changed into susceptible in February at the returned of a better base of last yr and subdued farm sentiment.
Three-wheeler (3W) sales had been mixed because of a very excessive base of last year. Two-wheeler volumes had also been mixed for players in this space. Passenger car (PV) sales hold to disappoint because of the higher value of ownership, a high base of remaining yr and unfavorable macro factors.
Commercial car – is still underneath strain
A negative impact of new axle load norms and macro challenges led using liquidity issues, financing troubles, rising interest charges and the slowdown in the financial pastime, have dampened consumer demand sentiment for CVs. The lengthy-time period outlook, however, maintains to stay fantastic because of cognizance on creation and infrastructure and the boom in mining activity.
Company-wise, Tata Motors registered a 9 percent year-on-yr (YoY) decline in CV quantity, led with the aid of 17. Three percentage and 0.7 percent fall within the medium and heavy commercial car (M&HCV) and light business car (LCV) segments. Volvo Eicher Commercial Vehicles (VECV) additionally witnessed a 6.7 percentage drop. Ashok Leyland and Mahindra & Mahindra (M&M) posted a flat increase in its monthly volumes due to decline in M&HCV section volumes, however, become partially offset by using the rise in LCV volumes.
Cars segment: New product launches to assist
Car phase maintains to show weakness for the eight consecutive months. Increase inside the overall fee possession led using rising hobby fee and obligatory lengthy-term insurance have dampened patron sentiment. Companies on this space have posted a muted/decline in PV extent for February, though new product launches helped.
Market chief, Maruti, published a three. Three percent decline in monthly volumes, even as Tata Motors’ grew a percentage. The control of Tata Motors is looking ahead to sturdy months ahead on the returned of a release of its new SUV, Tata Harrier, in January. M&M posted an increase of 16.6 percent in its month-to-month quantity, pushed through its newly released XUV300 version.