Bangalore:
Two of India’s top three listed bicycle manufacturers beat domestic sales estimates in February as chip shortages eased, while passenger car sales continued to grow on the back of demand for commercial vehicles.
Domestic two-wheeler sales, which are indicative of the financial health of India’s rural economy and demand in the country’s largest consumption segment, loosely defined as lower-middle-income households, grew by double digits from a year earlier.
Analysts had expected an increase in domestic two-wheeler sales, led by wedding-season-driven demand and a diminishing chip shortage.
TVS Motor Co Ltd posted the largest growth in domestic sales at around 28%, while Bajaj Auto Ltd grew at 24.7% and Hero MotoCorp Ltd at over 15%.
Bajaj missed Emkay Global and Nomura analysts’ expectations of a 45% and 43% increase in domestic sales, respectively, while Hero and TVS beat the brokers’ estimates.
However, total monthly volumes from both Bajaj and TVS Motors were dragged by weak exports, with the Economic Times newspaper reporting that Bajaj was considering production cuts.
Volatility in the economies of Nigeria, other African countries and Latin American countries has hurt exports for Indian bicycle manufacturers.
In the passenger car (PV) segment, market leader Maruti Suzuki India Ltd reported a sales increase of 10.1%, while Tata Motors Ltd recorded a growth of 7.4%.
Demand for large, popular and more expensive commercial vehicles remained strong, with volumes up 32.3% at Maruti Suzuki and around 10% at Mahindra and Mahindra Ltd.
Kotak analysts said the increase in PV volumes was due to a modest recovery in hatchback sales and strong SUV (Sports Utility Vehicle) sales, supported by improved chip supply.
Meanwhile, commercial vehicle sales grew by double digits as fleet managers and logistics companies continued to make purchases in anticipation of the new fuel emission standards from April 1, when buses and trucks will become more expensive.
Ashok Leyland Ltd’s volumes increased by 26.7%, while Eicher Motors Ltd’s monthly sales increased by 24.5%. Market leader Tata reported a 2.6% drop in CV sales.
(Except for the headline, this story has not been edited by DailyExpertNews staff and is being published from a syndicated feed.)
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