A disappointing set of February income numbers by using vehicle majors across all segments
– New axle load norms, tight liquidity, and non-availability of finance weigh on business car producers
– New product launches assisting passenger car and wheeler sales
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Challenging times remain for car majors, with their income numbers for February declining. The decline is because of subdued purchaser call for sentiment due to slowing industrial output, tight liquidity, non-availability of retail finance, higher interest rates, and moderate financial activity beforehand of trendy elections scheduled for April-May.
Commercial car (CV) phase numbers were blended for gamers in this space. The segment continues to face challenges because of the effect of the latest axle load norms, coupled with liquidity crunch and non-availability of retail finance. The tractor section was susceptible in February at the lower back of a higher base of the final year, and subdued farm sentiment.
Three-wheeler (3W) income was combined because of a very high base in the ultimate year. Two-wheeler volumes had been additionally combined for players in this space. Passenger automobile (PV) sales continue to disappoint because of a higher fee of ownership, the high base of the previous 12 months, and negative macro factors.
Commercial car continues to be under stress. The negative impact of recent axle load norms and macro demanding situations, led with the aid of liquidity issues, financing issues, growing interest rates, and a slowdown in economic activity, has dampened consumer demand sentiment for CVs. The long-term outlook, however, maintains to stay advantageous due to cognizance of production and infrastructure and a boom in mining activity.
Company-clever, Tata Motors registered a nine percent year-on-year (YoY) decline in CV extent, led by 17.3 percent and zero.7 percent fall within the medium and heavy commercial automobile (M&HCV) and light commercial automobile (LCV) segments. Volvo Eicher Commercial Vehicles (VECV) also witnessed a 6.7 percent drop. Ashok Leyland and Mahindra & Mahindra (M&M) published flat boom in their month-to-month volumes due to a decline in M&HCV segment volumes, but this was partly offset by an upward surge in LCV volumes.
Cars phase: New product launches to help
The car phase keeps showing weakness for 8 consecutive months. An increase in the total cost of possession, led by rising interest rates and mandatory long-term insurance, has dampened customer sentiment. Companies in this space have published a muted/decline in PV volume for February, although new product launches helped.
Market chief, Maruti, posted a three.3 percentage decline in monthly volumes, at the same time as Tata Motors grew a percentage. The management of Tata Motors is looking forward to strong months ahead on the back of the launch of its new SUV, Tata Harrier, in January. M&M published a growth of sixteen.6 percent in its monthly volume, driven by its newly launched XUV300 model.
Two-wheeler (2W) segment: Bajaj Auto continues to do well
In the 2-wheeler area, Bajaj Auto led the p.C. With a boom of 6. Three percent in February, driven using aggressive pricing actions taken with the aid of the control in its access-stage phase. The impact of that is subsiding on market leader Hero MotoCorp, which witnessed a two percent decline in its monthly sales. Eicher Motors maintains to supply disappointing numbers, posting a decline of 14.3 percent. TVS Motor Company introduced a 12 12-month-on-year boom of two percent at the back of growth accruing from bikes (eight . 2 percent).
Three-wheeler (3W): Mixed displaying
The universal 3W market posted combined numbers in February. TVS published a very strong boom (41.2 percent), and M&M added 10 percent growth. Bajaj Auto, the chief within the area, noticed an eight.7 percent decline because of the excessive base of the final year
Tractors: Gaining on nice rural sentiment
The tractor section continues to be blended with Escorts posting a YoY boom of nine. Nine percent as against a decline of eight.1 percent for M&M. The M&M management expects a positive sentiment in the coming days, achieved direct benefit transfer to marginal farmers, and different seasoned-rural tasks by using the authorities.
Exports: Mixed sentiment
The export market became combined for organizations. Maruti and Tata Motors posted a decline in their February income numbers, while M&M, Bajaj Auto, TVS, Eicher, and Escorts noticed a growth in February. Tata Motors’ management stated the decline was due to congestion on the Bangladesh border, new policies, and political uncertainty in Sri Lanka, and a drop in the Middle East car market.
