March 2018 saw strong growth across categories barring PVs. The strong growth in 2W and tractors was supported by early festive season. Volume growth of 18% for M&HCVs and 34% for LCVs was healthy, even though M&HCV SAAR is now lower vs past three months. The PV segment disappointed again with only 6% YoY growth (on a two-year basis also growth is 8% only, whilst it is 13% for 2W). Excluding Maruti, PV volumes declined 2%. Maruti continues to do well with 15% growth but remains constrained for capacity.
2W industry volumes were up +25% YoY with strong numbers across players except Bajaj which underperformed with only 5% growth, especially in comparison with 20% volume growth of Hero and 40% growth in motorcycle volumes of TVS (smaller base v/s Hero). Bajaj’s 2W exports and 3W volumes (including exports) picked up well. CV industry SAAR was lower this month at 360k (down from Dec which was boosted by pre-buy, as well as Feb levels). Tata posted 20% growth while AL was lower at 12%. Tractor volumes were very strong across the board. Escorts which has gained share this quarter had 65% growth; whilst M&M had 50% growth. PV volume growth was modest at 6% YoY.
Growth was led by market leader Maruti, which posted 15% growth in domestic PV volumes. Ex Maruti, volumes declined 2% YoY. Among the other large OEMs, Tata was the best performer with 30% growth in volumes, followed by Hyundai with 7% growth. M&M reported volume growth in low single digits. Honda reported a sharp 28% decline in volumes as Amaze is getting phased out ahead of the launch of its refresh. Toyota also reported a 9% decline in volumes. In FY18, industry reported 8% growth in volumes; ex-Maruti, growth was 3% only.