In this article, we will be evaluating the performance of Auto Companies in March 2021 in terms of their sales.
This blog includes an analysis of the sales performance of Auto Companies in March 2021 of 4-Wheelers and 2-Wheelers as well. In this, we will be reviewing Auto Sales in March 2021 segment-wise, which will include Passenger Vehicles, Commercial Vehicles, Tractors, and 2-wheelers.
1) Passenger Vehicle (PV) Segment:
In this segment, there is overall growth in sales of Passenger Vehicles.
Key Drivers for PV Segment:
i) Strong momentum in demand.
ii) PV OEMs have a strong pipeline in bookings.
iii) Ramp up production with improved capacity utilization %
PV Sales- Growth:
- Sales growth of Auto companies on a YoY basis is looking very impressive. Because March 2020 was a gloomy month due to the Covid-19 pandemic and strict lockdowns in the country.
- Due to this reason, we will majorly focus on Month-on-Month Sales figures of Auto Companies. We will compare the performance of the companies with February 2021 sales.
- The highest growth has been registered on MoM basis is of Ford Motors which is 34% and next to it is Kia Motors with Sales growth of 15%. Renault with 12% growth is in 3rd position.
- These companies have recorded the highest growth in sales among all the auto companies due to their low base effect.
- If we consider the companies with large base effect, then Tata Motors has recorded the highest sales growth of 9% MoM. While the YoY growth of Tata Motors is 422%.
- Also, Tata Motors has reported the highest monthly car sales in the last 9 years in March 2021.
- Tata Motors is the only company with a large base effect which has grown actually in the last 1 year by 69%. In FY20 1.31 lakh cars were sold, which has grown to 2.22 lakh crore in FY21.
PVs Segment: March-21 Sales
Market Share- March 2021:
- Maruti Suzuki in the PVs segment has the largest market share of 45.6% and hence retains its first position.
- But, the important thing to notice here is that, in FY20, Maruti was having a market share of more than 50%, the company has lost a great amount of share YoY. Also, the monthly fall in market share is around 1.3% from Feb-21 to March 21.
- The second-largest player in PVs Sector is Hyundai Motors with 16.4%. This company has witnessed a fall of 0.3% in its market share MoM.
- Between losing of market shares of leading players, Tata Motors has increased its market share from 8.8% to 9.3% MoM and is the 3rd highest market share in the PV segment.
- Even KIA motors have registered growth of 0.6% in its market share from 5.4% in February 2021 to 6% in March 2021.
- Market Share of other players is: Mahindra and Mahindra gained 0.2% share MoM and is now having 5.2% market share. Toyota's market share stands at 4.7% in March 2021. In March 2021, Renault’s market share has increased by 0.3%, and currently, it is 3.9%.
- Among all the companies, Tata Motors seems to be the clear winners in terms of market share. Companies are having a vision of attaining 13%-13.5% market share in the next 12 months and then the company is also targeting its all-time high market share of 17%-18%.
Domestic PVs- Market Share
2) Commercial Vehicle (CV) Segment:
Growth Drivers for CV Segment:
i) Rebound in Industrial Activities.
ii) Momentum gain in Transport & Logistics.
iii) Replacement Demand (Rising Fleet Utilization [>70%]):
iv) Vehicle Scrappage Policy
- Mahindra and Mahindra have reported the highest sales growth of 86% MoM in the CV Segment, which is quite good.
- Volvo (VECV) has also reported notable growth of 25% MoM and Ashok Leyland has a growth rate of 23% on monthly basis.
- Tata Motors sales have grown by 16% in the same period.
- Looking at YoY growth, the sales numbers and growth rate are phenomenal due to the low base effect.
- On Yearly basis, almost all companies have recorded a fall in sales between 20%-30% due to poor industrial activity.
Commercial Vehicle Segment- March 21 Sales Growth & Key Drivers
Growth Drivers for Tractor Sales:
i) All macroeconomic factors are in favor of agriculture.
ii) Rising Rural Income due to 2 consecutive normal monsoons, Higher MSP, Increased Liquidity.
iii) Rising Agri Output
- Mahindra & Mahindra has recorded growth of 122% YoY and MoM growth is 10%.
- Escorts' performance is also similar to the M&M, it has witnessed a growth rate of 124% YoY and 10% growth on monthly basis.
- Sales growth of M&M has grown by 18% between FY20 to FY21, while in the same period, Escorts have reported Sales growth of 24%.
- Tractor Business looks quite good where Escorts is a pure tractor business player and M&M involves combined play in the form of PV and CV.
Tractor- March 2021 Sales and Growth Drivers
4) 2- Wheeler Segment:
- Companies under 2-Wheeler Segment have also reported significant growth year on year on account of the low base effect.
- But if we consider the growth on monthly basis, then HeroMotoCorp has witnessed 14% growth, Bajaj Auto has gone through de-growth of 0.6%, TVS Motors has also grown by 8% and Royal Enfield growth rate fell by 5% MoM.
- In yearly terms, the sales growth of almost all the companies have shown negative growth only exception here is for Here MotoCorp, as their Export has grown by 7% YoY.
2-Wheeler Segment- March 21 Sales
- Hero MotoCorp has recorded growth of 55% MoM in Exports in March-21 sales.
- While Bajaj Auto has reported a fall of 19% on monthly basis in their exports in March-21. The reason for this can be the early closing of books on 20th March 2021.
- TVS Motors exports have grown by 18% monthly whereas Royal Enfield exports have grown by 29% in March 2021.