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  1. Remain positive on the new product cycle for Maruti

Remain positive on the new product cycle for Maruti

Maruti domestic sales grew by 11% y-o-y driven by new launches like Baleno, Vitara Brezza and S-Cross. Co. clarified that shipments for month of May were not impacted due to fire at a vendor factory which impacted production for Maruti in the last couple of days of May.

By: | Published: June 3, 2016 7:02 AM

Maruti domestic sales grew by 11% y-o-y driven by new launches like Baleno, Vitara Brezza and S-Cross. Co. clarified that shipments for month of May were not impacted due to fire at a vendor factory which impacted production for Maruti in the last couple of days of May. Hyundai domestic volumes. Increased 10% y-o-y. Mahindra & Mahindra (M&M) PV sales grew 8% y-o-y helped by new launches KUV100 and TUV300. Tata Motors PV sales declined sharply by 23% y-o-y despite good response to the new Tiago.

Hero 2W sales slowed to 2% y-o-y. Growth for motorcycles has been impacted by a front loaded marriage season in 2016 (Jan–Apr) vs 2015 (Jan–Jun). Honda’s domestic 2W volumes grew 18% y-o-y driven by 25% y-o-y growth in scooters while motorcycles grew only 7% y-o-y. TVS domestic 2W sales were up 18% y-o-y, while exports declined 11% y-o-y. Royal Enfield vols. remained strong up 37% y-o-y. We remain negative on incumbent motorcycle OEMs as we believe executive motorcycle demand is structurally challenged in urban markets due to substitution from scooters. We remain positive on the new product cycle for Maruti. We expect Maruti with its launches like Ciaz, Vitara Brezza and Baleno to be able to gain further market share in higher price segments.

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