How long is the piece of string in my pocket? The journey to Dealer profitability can be short and quick, or long and hard. The bottom line is to do the easy things first. "Low hanging fruit". Eliminate waste of all kind, and always put the customer at the centre of any activity and decision. Look at each and every POTENTIAL revenue stream, and exploit it to the max.Never increase revenue by loading the customer invoice.
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Satiate Knowledge Share Center YTD M ARKET S HARE 06th March 2014 C AR S ALES & M ARKET S HARE A NALYSIS 2013-14 We’re on the Web! satiateconsulting.com “The Secret of change is to focus all of your energy, not on fighting the old ,but on building the new” Satiate Consulting Pvt Ltd., #155,3rd Cross,3rd Main,Minhaj Nagar JP Nagar Post,Bangalore-560078. Ph:+91 9900246597,+91 9980015212 44% 16% 9% 6% 6% 5% 4% 3% 2% 2% 1% 1% 0.5% 0% 10% 20% 30% 40% 50% - 2,00,000 4,00,000 6,00,000 8,00,000 10,00,000 Maruti Suzuki Hyundai Mahindra Tata Motors Toyota Honda Ford Chevrolet Renault VW Nissan Skoda Fiat Total Market Share - 0.20 0.40 0.60 0.80 1.00 1.20 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Maruti Suzuki Hyundai Mahindra Tata Motors Toyota Honda Ford Chevrolet Renault VW Nissan Skoda Fiat HM-Mitsubishi Maruti Suzuki Hyundai M&M
Transcript
Sat ia te Knowledge Share Cente r
YTD MA R K ET SH AR E
06th March 2014
CAR SALES & MARKET SHARE ANALYSIS 2013-14
We’re on the Web! satiateconsulting.com
“The Secret of change is to focus all of your energy, not on fighting the old ,but on building
How to increase profitability of "Auto Dealerships" ?
How long is the piece of string in my pocket? The journey to Dealer prof-itability can be short and quick, or long and hard. The bottom line is to do the easy things first. "Low hanging fruit". Eliminate waste of all kind, and always put the customer at the centre of any activity and decision. Look at each and every POTENTIAL revenue stream, and exploit it to the max. Never increase revenue by loading the customer invoice.
Automobiles_Monthly Volume Round Up: Excise Cut Could not Benefit Much
The volume data of the Indian auto companies show a disappointed performance with YoY drop, while few players recorded sequential decline in Feb’14, despite passing benefit of excise cut in the month. Auto industry has been witnessing slowdown across segment except two wheelers and Tractors, while in the month of Feb’14, two wheeler players also displayed weakness with flat to decline in volumes. Tractors proved Outlier in the month, though growth tapered down.
After recording growth for years together, M&M’s Auto volume declined for the sixth consecutive month with a fall of 12% YoY & 1.2% MoM to 42,116 units, while its Tractor volume soared 18.4% YoY (down 12.5% MoM) to 17,592 units in Feb’14, Tata Motors’ volume declined 35.6% YoY & 1.3% MoM to 39,951 units. Maruti Suzuki’s volumes declined 0.4% YoY (up 6.5% MoM) to 109,104 vehicles in Feb’14. In two-wheeler space, TVS Motor recorded volume of 177,662 units, up 7.2% YoY (down 4.6% MoM) in Feb’14. Ashok Leyland’s total volume declined 21% YoY (up 1% MoM) to 7,915 units in Feb’14. Eicher Motors’ total volume decreased 23% YoY (up 9% MoM) to 2,840 units in the month.
In two-wheeler space, Hero MotoCorp’s total volume was flat YoY, but down 10% MoM to 504,181 units in Feb’14. Bajaj Auto recorded volume of 313,294 units, down 6% YoY & 1.5% MoM in Feb’14.
Escorts’ volume grew by 8% YoY to 4,627 units in the month.
Two-wheeler Segment
Hero MotoCorp: Hero MotoCorp (HMCL.IN/HROM.BO) recorded total volumes of 504,181 units in Feb’14, up by just 0.6% YoY (down 10.2% MoM), as Company has stronger presence in rural India as compared to peers, which benefi ed Company on volume front to some extent in the month.
Hero MotoCorp – Monthly Volume
Source: Company data
Bajaj Auto: Bajaj Auto (BJAUT IN/BAJA.BO) sold 313,294 units in Feb’14, down 5.7% YoY & 1.5% MoM, due to fall in its domestic volume to the tune of 13.2% YoY & 5.1% MoM to 171,285 units. Company’s performance was also impacted due to subdued three wheeler exports on high base. Company’s export volume reported a growth of 5.1% YoY & 3.2% MoM to 142,009 units in the month. Company’s exports impacted due to loss of volumes in Egypt, which had some regulatory issue for imports of motorcycles and three wheelers. The performance of three wheelers was subdued with fall of 2.7% YoY to 39,971 units, mainly due to fall in domestic volume. Its total motorcycle volumes stood at 273,323 units in Feb’14, down 6.2% YoY & 2.9% MoM.
Bajaj Auto – Monthly Volume
Source: Company data
Units Feb 14 Feb 13 YoY (%) Jan 14 MoM (%) YTD FY14 YTD FY13 YoY (%) Two wheelers 504,181 501,271 0.6 561,253 (10.2) 5,721,867 5,607,300 2.0
Units Feb 14 Feb 13 YoY (%) Jan 14 MoM (%) YTD FY14 YTD FY13 YoY (%) Motorcycles 273,323 291,297 (6.2) 281,390 (2.9) 3,151,825 3,490,068 (9.7) Three Wheelers 39,971 41,090 (2.7) 36,781 8.7 413,935 445,863 (7.2) Domestic Two & Three Wheelers 171,285 197,238 (13.2) 180,527 (5.1) 2,100,008 2,490,148 (15.7)
Export Two & Three Wheelers 142,009 135,149 5.1 137,644 3.2 1,465,752 1,445,783 1.4 Total Two & Three Wheelers 313,294 332,387 (5.7) 318,171 (1.5) 3,565,760 3,935,931 (9.4)
TVS Motor: TVS Motor (TVSL.IN/TVSM.BO) clocked total volumes of 177,662 units in Feb’14, up 7.2% YoY (down 4.6% MoM). There was a up-tick in the Company’s Scooter volumes, while its three wheeler sales grew 52.5% YoY to 7,369 units in the month. The Company’s two wheeler volume rose 6% YoY (down 5% MoM) to 170,293 units, while motorcycle sales rose just 3% YoY to 62,762 units in Feb’14. Company’s domestic volume was flay, while its exports grew 25.5% YoY to 22,713 units in the month.
TVS Motors –Monthly Volume
Source: Company data
Four-wheeler Segment
Tata Motors: Tata Motors (TTMT.IN/TAMO.BO) sold 39,951 units in Feb’14, down 35.6% YoY & 1.3% MoM. Its volume in M&HCVs space plummeted 14.3% YoY, but grew 11.5% MoM to 9,109 units in Feb’14. Its PC sales grew 16.2% YoY & 6.7% MoM to 9,026 units in Feb’14. The LCV space was highly subdued, as Company’s LCV volumes fell 60% YoY & 15% MoM to 14,881 units, after recording double digit growth for months together. Its exports rose 16% YoY & 21% MoM to 4,636 units in Feb’14.
Tata Motors – Monthly Volume
Source: Company data
Mahindra & Mahindra (M&M): M&M’s (MM.IN/MAHM.BO) combined volume (Auto+Tractor) was at 59,758 units, down 4.7% YoY & 4.8% MoM. It sold 39,338 units in the domestic automotive segment in Feb’14, down by 11.4% YoY & 2.4% MoM. Its key volume growth driving PV segment comprises of UV and PC fell 17.6% YoY & 2.4% MoM, while its LCV segment was down by 3% YoY and 2.5% MoM to 14,701 units in Feb’14. Company’s exports declined 17.4% YoY to 2,828 units in the month. Company’s Tractor acted as a savior, as its volumes rose by 18.4% YoY & 12.5% MoM to 17,592 units in the month with an improvement in Southern and Western regions.
M&M – Monthly Volume (Automotive)
Source: Company data, 4-Wheel Pickups: LCVs
Units Feb 14 Feb 13 YoY (%) Jan 14 MoM (%) YTD FY14 YTD FY13 YoY (%)
Motorcycles 62,762 60,985 2.9 65,449
(4.1) 725,322 688,165 5.4
Scooters/ Mopeds 107,531 99,910 7.6 114,127
(5.8) 1,085,436 1,129,665 (3.9)
Three Wheeler 7,369 4,801 53.5 6,737 9.4 73,636 44,113 66.9
Total Volumes 177,662 165,696 7.2 186,313 (4.6) 1,884,394 1,861,943 1.2
Units Feb 14 Feb 13 YoY (%) Jan 14 MoM (%) YTD FY14 YTD FY13 YoY (%)
Maruti Suzuki: Maruti Suzuki (MSIL.IN/MRIT.BO) delivered mediocre performance in Feb’14, with its monthly vehicle sales standing at 109,104 units, down 0.4% YoY (up 6.5% MoM), due to fall of 20% YoY in exports. Company’s UV segment witnessed fall on account of intensifying competition (Renault and Ford with new launches), while its Van segment witnessed double digit growth of 22% YoY after registering decline in previous two months. The Company’s Mini segment (M800, Alto, Wagon R, A-Star) fell 9.6% YoY to 37,342 units, while its Compact segment (Swift, Estilo, Celerio & Ri ) rose 19.4% YoY to 28,672 units, due to incremental volumes of newly launched Celerio in Feb’14. The Company’s Super compact segment was almost flat YoY to 18,353 units.
Maruti Suzuki India – Monthly Volume
Source: Company data
Ashok Leyland: ALL sold 7,915 units in Feb’14, down 21% YoY, but up 0.9% MoM. The Company’s LCV segment – “DOST” recorded volume of 2,339 vehicles in the month, decline of 22% YoY (up 0.9% MoM). Excluding DOST, the Company’s volume declined 21% YoY, but grew 0.8% MoM to 5,576 units in Feb’14.
Ashok Leyland – Monthly Volume
Source: Company data
Eicher Motors: Eicher Motors (EIM.IN/EICH.BO) sold 2,840 units in Feb’14, down 23% YoY (up 9% MoM). In the domestic market, the Company’s volumes declined 29% YoY, but up 9% MoM to 2,531 units.
Eicher Motors – Monthly Volume
Source: Company data
Tractor Segment
Escorts: Escorts (ESC.IN/ESCO.BO) sold 4,627 units in Feb’14, up 7.5% YoY (down 2.4% MoM). In the domestic market, the Company’s volumes rose 6.8% YoY (down 2.4% MoM) to 4,581 units.
Escorts – Monthly Volume
Source: Company data
Other Auto Players
Source: Company data
Units Feb 14 Feb 13 YoY (%) Jan 14 MoM (%) YTD FY14
