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Delay in festive season causes September sales to skid for most…

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Delay in festive season causes September sales to skid for most…

 September has been a good month for most of the auto companies (mainly the 4 wheelers) as they have started getting ready for the festive season lined up during the next two months. Dealers are stuffed with inventory to catch the festive demand. With new product launch M&M has clearly shown that a good product portfolio attracts demand defying macro hurdles, while Maruti Suzuki has posted an unexpected performance as Manesar plant is back to normal and has in fact started second shift of operation. However, macros still remain weak for Maruti and valuations look stretched. Tata Motors though posted a negative growth, its negativity was insignificant as LCV segment excelled again. On the other hand, 2 wheelers have posted a dismal show in September as inventory pile up fear has come true leading to lesser push to the dealers’ end. Also, the sales in September were down yoy as in last year, the festivals were spaced out and had already started in September.  Hero, Bajaj and TVS Motors all have posted a yoy decline, while the latter has posted a good sequential growth. We expect the next couple of months to be strong for the industry and somewhat improve the full year performance.

 Ashok Leyland – (TP- Rs 25, Neutral) – MHCVs dip, Dost excels

In September, ALL’s MHCV sales dipped by 12% yoy to 7,596 units, while the LCV Dost sold 3,027 units v/s 197 units last year when it was just launched. Including Dost, the total sales increased by 21% yoy and 13% mom to 10,623 units. This clearly signifies that amidst pain in the MHCV segment, LCVs are still holding the forte strongly for ALL. YTD, the company has posted a 33% growth to 57,327 units mainly on the back of the LCV Dost, which was launched only in October last year.

 Bajaj Auto – (TP – Rs 1825, Neutral) – Exports recovery on track

Bajaj Auto’s September sales came 14% down on yoy basis to 3,60,152 units, while there was a mom improvement of 4%. Motorcycle sales de-grew by 15% yoy despite the new Pulsar 200 NS and Discover 125ST putting up a good show ( sold 9,000 units and 35,000 units respectively) in this month. Exports are seeing a mom recovery while on yoy basis the dip is narrowed to just 6% as Bajaj Auto sold 133,222 units with Sri Lankan and Egyptian markets almost up to their normal monthly run-rate. We expect full recovery from October onwards in exports and negative growth in domestic market to correct somewhat from the upcoming couple of festive months.

 Hero MotoCorp – (Under Review) – Solid dip

HMCL’s September sales nosedived by 26% yoy and 9% mom to 4,04,787 lakh units in September ahead of festive season which we believe is an attempt to clear off inventory and newly start stuffing the dealers with fresh inventory along with new models to catch the festive demand. Also the management has cited this dip as the current sentiment in the 2W industry. We expect demand to get back in full form from October onwards.

 Mahindra and Mahindra – (TP- Rs895, Neutral) – Consistent auto business, FES sees month on month uptick

M&M sold 48,342 units in the auto segment, 10% growth yoy and a 5% mom growth. Passenger UV sales in the month grew by 22% yoy to 23,808 units, which was a 15% mom growth. The UV sales growth came on the back of ramp up in the production of XUV5oo and a pan India launch of the same in June. Also the compact SUV Quanto was launched which has received a warm response, as its order backlog is at 3,000 vehicles currently. 4W pick-up segment which includes Gio, Genio and Maxximo posted a 7% growth yoy as the LCV segment continued to grow at a strong pace indicating strong demand in the sub 1 tonne market despite a slowdown in the bigger version of the CV sector. 3Ws went back to negative growth after a strong August, as sales declined by 17% yoy. Exports grew by a 3% yoy to 3,079 units as XUV5oo was launched in South Africa in August and traction was seen from geographies like Chile, Africa, Middle East and the US. FES segment posted a better than expected performance as the company sold 20,085 units in September which was a 24% yoy decline, however it was a whopping 52% rise mom. Although YTD FES segment has fallen by 7%, we expect second half to show some improvement on expectations of a strong rabi crop.

 Maruti Suzuki – (TP – Rs 1,123, Underperformer)-Surprising stuff!!

Maruti Suzuki (Maruti)‘s sales in this month came at 93,988 units up by 74% mom and 10% yoy which was much better than our as well as market’s expectations.  In a scenario where petrol prices are moving up, the bread and butter segment, the mini segment of Maruti comprising Alto, Wagon R and A Star grew by 4.9% yoy as the company is preparing for the festive season, while the company is providing >10% discounts on Alto and Wagon R. The compact hatchback segment comprising Swift, Ritz and Estillo has seen a fall of 9.7% yoy as diesel prices have seen a hike in the month while on the other hand, production at Manesar is slowly getting back to normal.  Dzire model which had been a star performer for Maruti succumbed to the lockout and declined by 60.7% yoy in August. But in September it came back to its old glory as it grew by 24.3% yoy. Vans segment grew in the positive territory after several months, as it went up by 7.5% yoy as vehicles such as Omni and Eeco showed some improvement. MPV segment, backed by the newly launched Ertiga sold 7,224 units thus maintaining its high demand base of ~7,000 units. SX4 model grew by about 46.9% yoy although the model has seen strong pressures over the past year as competition from Vento, City and Verna has increased. Exports looked weak this month again as they fell by 23% yoy. Although September sales were strong, and the next couple of months will continue to remain so, the company will still underperform on a full year basis as fuel prices are zooming up and interest rates are yet to cool off. At current price point, the stock looks overvalued to us.

 Tata Motors – (TP- Rs298, BUY)- Numbers above expectations

September sales for the company were lower by 4% yoy, while on mom basis, it went up by 5%. CV sales grew by 5% yoy, out of which LCV sales were up by 19% yoy signifying LCV segment’s defiance of the macro uncertainties. New launches like the variant of Ace Zip led to the growth in LCV. MHCV sales however slipped by 16% yoy as macro weaknesses continued to trouble in the month. PV segment sales fell by 18% yoy while an improvement is expected in festive season. Nano segment grew by 87% yoy to 5,491 units, while it was an 15% decline on a mom basis.  Indica range fell by 23% yoy while Indigo products posted 26% decline yoy. Utility segment sales were by 15% yoy.

 TVS Motor – (TP- Rs 32, Underperformer)- Aberration!

TVS sold 1.71 lakh units in September which was better than our expectations. This was a 10% mom growth and a de-growth of 22% yoy. Motorcycles de-grew by 29% yoy to 63,832 units, while scooters de-grew by 28% yoy to 40,055 units. 3 Wheelers improved drastically as it touched record high of 5,005 units a growth of 36% yoy.  We believe this to be a 2-3 months affair on account of festive season and the stock would in our view  remain an underperformer.


Two wheelers hit a roadblock, 4 wheelers better than expectations

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Two wheelers hit a roadblock, 4 wheelers better than expectations

 In a lean month of December, 4 wheeler companies posted a good performance despite severe pressures in terms of consumer sentiments, higher cost of ownership, high fuel prices, maintenance shutdowns at few companies and expected slowdown in demand. Maruti continued to sell more than 90,000 units, while M&M sold >42,000 units of auto sales including SUVs, LCVs and 3 wheelers, which was a good growth. Tata Motors also improved its PV sales performance with Nano putting one of its best performances in the recent past. On the CV side, LCVs continued their robust performance while MHCV grew within their limits. 2 wheeler sales spoiled the otherwise good show from the auto pack, as Bajaj Auto posted a dismal show and TVS Motor put up a suppressed growth. Going forward, with seasonally strong Q4 coming up, we see some recovery in auto sales. Any cut in interest rates or any moves by the government in budget like application of higher excise duty on diesel cars will be the triggers to the sector. Expected price hikes from most of the players may have a contra-intuitive impact on the volume performance of the sector. We continue our cautious view on the sector.


Bajaj Auto – (Under review) – Unexpected weakness witnessed

Bajaj posted a very disappointing sales performance in December as sales plummeted by 18% mom to 3,05,000 units, while growing at just 10% yoy.  Motorcycle sales were up 8% yoy and down 21% mom. A maintenance shutdown for 4-5 days, increasing inventories at the dealers’ end, weakening demand for premium segment two wheelers and lukewarm response to the recent launch of Boxer bike led to a tepid performance by Bajaj Auto. Exports de-grew by 7% mom while growing by 25% yoy. Going forward, as retail inventory gets cleaned up and seasonally good Q4 comes up, we are expecting Bajaj Auto to get back to the level of >350,000 units.


Hero Motocorp – (TP – Rs1,928, Neutral) – Solid resilience!

HMCL has surprisingly held a 5.4 lakh units  of sales  performance, a growth of 7.8% yoy and flat growth mom.  The company is a proxy to the rural growth in India and continues to post stellar numbers on growing rural economy even when its competitors are faltering. We expect them to put up a volume growth of 15% in FY 12, however we are concerned about competition coming up from Honda in FY 13 as they are rapidly ramping up the capacities against Hero who are at nascent stage of setting up new capacities which may become a constraint to their  growth. Slightly stretched valuations and margin concerns are other worries.


Mahindra and Mahindra – (TP- Rs889, BUY) – Auto segment posts decent performance, FES slows down

M&M sold 42,761 units, a 26% growth yoy while it was a growth of 5% mom. UV sales in the month grew by 23% yoy to 18,078 units, which was 8% growth mom. 4W pick-up segment which includes Gio, Genio and Maxximo posted a robust 35% growth yoy as the LCV segment continued to grow at a strong pace indicating expansion in the total sub 1 tonne LCV market. Verito sales were strong in the month at 1,263 units up 41% yoy v/s 896 units. Export sales moved up by 89% yoy  to 2,870 units with traction seen in major export markets like South Africa and US. Farm Equipment Segment (FES) which had posted a very robust growth of 71% in October almost halved to 17,527 as inventory correction happened in November and moved down even further to 15,315 in December and we expect the current monthly run rate of tractors to be maintained, thus punching a growth of close to 18% in FY 12. Opening up of bookings for XUV 500 again in 5 cities of Mumbai, Pune, Bangalore, Chennai and Delhi in January will lead to a better volume performance from this model in FY 13. Pan India launch will happen once the capacities move up to >5,000p.m. levels in May from current levels of 2,000 p.m.


Maruti Suzuki – (TP – Rs 887, Underperformer)- Stable sales performance

Maruti Suzuki (MSIL)‘s sales in December came at 92,161 units, flattish mom, while on yoy basis it was down by 7% as consumer sentiments in PV industry deteriorated off late. The flattish growth indicates signs of stability at Maruti’s end even when there was a maintenance shutdown at their plants. Had the  shutdown not been there, sales would have come close to 100,00 level. In a scenario where petrol prices are moving up, the bread and butter segment, the mini segment of Maruti comprising Alto, Wagon R and A Star de-grew by 16% yoy. The compact segment comprising Swift, Ritz and Estilo remained flat yoy.  Vans segment also declined by 42% yoy. Exports were the star performer as they grew by 50.5% yoy s they sold 14,686 units a jump over 11,000 run rate observed over the past few months. However, SX4 and Dzire segments posted growth, at 11% and 6% respectively. Any rate cut by the central bank of India may have a positive impact on the volumes, while petrol price hike will impact sales adversely. New launches from competitors add fuel to this. The upcoming auto expo in January will see two MPV launches from Maruti (one being named as Ertiga).


Tata Motors – (TP- Rs195, Neutral)- Performance par excellence!

December sales for the company were at 82,278 units, 22% up yoy and 7% up mom. CV sales grew by a healthy 14% yoy, out of which LCV sales were up by 20% yoy signifying LCV segment’s defiance of the macro uncertainties. New launches like the variant of Ace Zip led to the growth in LCV. MHCV sales also grew by 5%. PV segment sales have started to pick up since last couple of months as they grew by 47% yoy on some strength coming from Indica range which was up 57% yoy on new launch of Indica Vista launched a quarter back. Utility segment sales went up by 35% yoy. Indigo range sales were smartly up by 32% yoy. Nano sales grew at 7,466 units  29% up yoy and showing a quick recovery over the past few months and lows hit at 500 units in November 2010.


TVS Motor – (TP – Rs60, BUY)- Still below the monthly mark of 2lakh…

TVS Motor failed again this month to sell 2 lakh units. In October they had missed due to an unexpected maintenance shutdown. However, the fall in November came on weak motor cycle sales and the same continued in December as well. Total sales showed a flattish to a slight negative growth on yoy basis at 170,428 units, while sequentially they de-grew by 3%. Scooter sales grew by 7%, while motor cycle sales declined by 8%. Bloating up of inventory pipeline on weak retail demand led to such an underperformance. TVS’s 3 wheeler sales are on a lower trajectory as they sold just 2,523 units from 3,431 units sold in last December. Exports grew by 6% yoy. We believe that 15% volume guidance by management looks too optimistic. We expect 9% growth from TVS this year. In view of attractive valuations, upcoming new launches and economies of scale, we remain positive on TVS even after factoring 9% volume growth this year and 11% next year.

Seasonality takes its toll on the auto numbers

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April sales numbers for most of the auto companies were modest on a month on month (m-o-m) basis as per our expectations. The softening of auto sales in April is a seasonal factor as auto companies push volumes at the dealers’ end before the financial year end. Hence on a sequential basis, the volumes have fallen as per our expectations. We expect  approximately a mid teen digit of growth in the auto segment, which may wary according to the sub sectors within the segment – PV(15-17%), 2W(12-13%) and CV(13-14%). However, stock based outperformers in the sector will be M&M (unique portfolio of products, dependence on rural markets and market leadership with a significant margin), Bajaj Auto (increasing market share, strong export presence and dual brand dependence) and Tata Motors (CV market leader and strong international business) remain our top picks within the auto sector.

Hero Honda – (TP – Rs1,527, Underperform)

Hero Honda reported a 39% yoy strong growth to 5.17 lakh units in March, while it was a flattish growth mom. With this strong growth, the company has continued its strong run with a wide portfolio of products. Going forward, with the Honda split done, the company will face strong competition from Honda, raising concerns regarding R&D and maintaining the brand name. Furthermore, the company has to pay royalty of Rs24bn to Honda over next 3 years, which will raise the royalty as a % of sales to 3.5-3.8% from current 2.8%. This will impact margins negatively. Margins to get impacted on this account and also due to additional spending the company have done on advertising during Cricket World Cup in Q4 FY11. New production plant, opportunities in export markets and new launches can trigger the stock price in the medium to long term.

Bajaj Auto – (TP – Rs 1,680, BUY)

Bajaj Auto reported a 17% yoy growth in total sales in March to post sales of 3.67 lakh units. The monthly sales were significantly up by 22% on mom basis, as the company’s exports of 32,000 units were in transit last month due to crisis in the Middle east and North Africa. Excluding the impact of that, the sales would have grown by 6% mom. Management expects the recently launched Discover 125cc to add volumes of 30,000 per month, which along with the addition of 130 new dealers will lead to Bajaj Auto looking at monthly sales in the vicinity of 4lakhs this quarter. Also the company has enhanced its 3 wheeler capacity to 45,000 units per month, which will help the company to achieve its new year target.

Mahindra and Mahindra – (TP- Rs 861, BUY)

M&M reported a strong 23% yoy growth in its auto segment to 32,090 units, with passenger UV sales growing 15%yoy and the 4W pick-up segment which includes Gio and Maxximo posting a 16% growth yoy. Verito, the new name of Logan has posed yet another month of improved sales performance with a growth of 232% yoy will sales recorded at 1,006 units. This has been a very consistent performance from Verito which is expected to get a further lift in performance post M&M brand getting associated with it shortly. LCV and MHCV sales also saw a growth of 9% yoy in a month which is usually dull.  Farm Equipment Segment (FES) posted a very robust growth of 14% yoy to 18,530 units, while sequentially they were slightly down. In April, M&M launched the Maxximo minivan at Rs3.2lakhs which is expected to add to the PV segment of M&M along with Verito. M&M expects May and June to see strong tractor sales. New plant at Zaheerabad will significantly boost tractor sales in the medium term.

Maruti Suzuki – (TP – Rs 1,441, Neutral)

Maruti Suzuki (MSIL) reported their lowest sales since June 2010, by selling ~97,155 units in April, a growth of 4.4% yoy and a dip of 22% mom, in a seasonally dull month. A3 segment was the top performing segment with 39% yoy growth, due to the launch of SX4 diesel variant launch last month and strong Dzire sales. Kizashi sales were at 35 units. C segment sales were up by 22.2% due to strong demand for Eeco in taxi segment as well.  Exports deteriorated to ~10,000 units , down by 23% yoy as well. The overall sentiment in the PV market is slightly weakening as footfall conversion ratio is decreasing on higher interest rates and rising fuel prices. The capacity expansion coming up in the coming 1.5 years will lead to significant jump in the company’s volumes and topline, however in the short term, the company will struggle maintaining its margins against appreciating yen leading to higher royalty payouts, vendor issues rising from Japanese crisis, increasing fuel costs, inflation  and rising commodity prices.

Tata Motors – (TP – Rs 1650, BUY)

April sales for the company were at 64,383 units, 13% up yoy and a 23% fall mom. The company had already guided rationalization of production to balance the inventories at the dealer’s, in line with which the company produced 10-15% lesser than March. CV sales grew by 19% yoy, out of which LCV sales were up by 28% yoy and MHCV sales were 6% higher yoy. PV segment sales went up slightly by 4% yoy and were down by ~20% mom to 25,436 units while utility segment sales grew by 15% yoy on the success of newly launched Aria.  Indica range continued to see a de-growth of 53% yoy as competition in the hatch back segment continued its intensification with the market leaders Maruti and Hyundai feeling the heat. Indigo range sales were also low by 27% yoy. Nano sales were the exception with higher m-o-m numbers at 10,012 compared to 8,707 units in March and 500 units in November.

TVS Motor – (Under Review)

TVS sold 1.67 lakh units in April, a growth of 14% yoy, while on a mom basis it showed decline a 13% growth. This decline was due to usually weak April. Management is expecting the export volumes to pick up in the coming months while domestic volumes to get slightly impacted by interest rate hike, but will get support from the higher utilization rates with higher expected demand.

From the desk of Ashwin Patil

Written by Fundamental Side

May 3, 2011 at 4:24 pm

Momentum Continues in Mo-Town

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Automobile sales for January– Macro pressures fail to dampen the momentum

Hero Honda – (TP – Rs1,777, NEUTRAL)

Hero Honda reported a 19.7% yoy strong growth to 4.66 lakh units in January, but it was a ~7% dip mom. We believe the company will face strong headwinds going forward as Honda goes solo in the Indian markets aggressively and the company underperforms its two wheeler peers on margin as well as volume front in the wake of competition.

Mahindra and Mahindra – (TP- Rs 878, BUY)

M&M reported a strong 22% yoy growth in its auto segment to 35,718 units, with passenger UV sales growing 11%yoy and the 4W pick-up segment which includes Gio and Maxximo posting an 18% growth yoy. Maxximo has maintained its 23% market share in the geographies where it is launched. The company has recently announced the launch of another LCV ‘Genio’ priced at Rs5lakhs. Since the termination of JV with Renault, Logan seems to be regaining its lost pride, as it is posting strong growth month on month. In January, M&M sold 1,120 units of Logan as compared to 555 units in January 2010 and 896 units sequentially. LCV sales grew by 28% yoy, marked by the increase in the sales of LCVs from Mahindra NavistarJV. Farm Equipment Segment(FES) posted a very robust growth of 22% yoy to 19,340 units, while sequentially also they grew by 17%. On a cumulative basis, the company has grown by 28% and 21% in the auto and FES segments respectively.

Maruti Suzuki – (TP – Rs 1589, BUY)

Maruti Suzuki (MSIL) once again sold volumes in the vicinity of 1,10,000 units at 1,09,743 units after a lackluster December. This was a growth of 15% yoy and 22% mom. The company has stuck to its guidance of selling 1,10,000 units per month till the end of FY 11E. MSIL have sold more than 1 mn units cumulatively in the interim of the year for the first time. In the full year we expect it to sell 1.2mn units and post FY11E, management expects it to sell 1,16,000 units per month (1.4mn p.a.). Within the segments, the bread and butter A2 segment of hatch backs posted 24% growth, while the A3 segment witnessed 33% growth. The C segment which contains the recently launched Eeco also showed a good traction of 28% rise on a yoy basis. Exports continued to slide down by 36% as non Western European markets are yet to show signs of pick up.

Tata Motors – (TP – Rs 1580, BUY)

January sales for the company were extremely strong with a 12% mom growth and a 15% yoy growth to 75,423 units, the highest ever sales for the company defying the macro concerns like interest rate hike and inflation worries. CV growth pace was robust in the month, as M&HCV grew by 5% yoy, while LCV grew by 17% yoy. Overall CV sales grew by 12% yoy. PV segment grew by 14% yoy to 28,460 units while utility segment sales grew by 26% yoy. Indica range saw a de-growth of 8% yoy as competition has started to intensify in the hatch back segment where the company has a limited product portfolio in the PV segment, especially the hatch backs. Indigo sales saw a sales growth of 17% yoy. Nano sales were higher m-o-m at 6,703 units vis-à-vis 5,784 units in December and a dismal November performance of just 500 units on attractive marketing ventures. Cumulative sales of Nano are ~53,000 way below their expected full year target of >100,000 units.

TVS Motor – (TP – Rs86, BUY)

TVS sold 165,152 units in January, a growth of 30% yoy, while on a mom basis it showed a 4% decline. The sequential drop was due to a temporary maintenance shutdown of its plants in the month of January. Three wheeler sales came at 3,427 units. Going forward, the company has maintained its annual guidance of 2mn vehicles in FY 11E by selling more than 1.75 mn units per month in the remaining two months. Management is expecting the export volumes to pick up in the next two months while domestic volumes to get slightly impacted by interest rate hike, though we believe that 2 wheelers will not get significantly impacted by it.

Written by Fundamental Side

February 1, 2011 at 6:02 pm

LKP reports: Automobile sales for the month December – Back on track

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From the desk of Ashwin Patil.

Mahindra and Mahindra – (TP- Rs 878, Outperformer)
M&M reported a healthy 42% yoy growth in its auto segment, with UV sales growing 24%yoy and the 4W pick-up segment which includes Gio and Maxximo posting a stellar growth of 47% yoy. Logan reported 896units of sales, a growth of 191% marking a revival of the sedan. LCV sales grew by 22% yoy. On a qoq basis, auto sales have grown by 28%. FES segment posted a very robust growth of 31% yoy to 16,334 units on good monsoon and rabi season picking up in the Northern parts of the country. On a cumulative basis, the company has grown by 29% and 21% in the auto and FES segments respectively.

Tata Motors – (TP – Rs 1580, Outperformer)
December sales for the company were very strong with a 23% mom growth and a 31% yoy growth to 67,441 units thus marking the company’s comeback after a lackluster November. CV growth pace was robust in the month, as M&HCV grew by 14% yoy, while LCV grew by 35% yoy with the highest ever monthly sales of the ACE family. Overall CV sales grew by 25% yoy. PV segment grew by 28% yoy to 19,977 units while utility segment sales grew by 62% yoy on the launch of Tata Aria. Indica and Indigo sales saw a sales growth of 40% and 3% respectively, marking a renewed demand for them. Nano sales were back on track at 5,784 units a 60% yoy growth after a dismal November sales which were at just 500 units. We believe this is due to the company’s rejuvenated marketing efforts and pushing volumes to the dealer end.

TVS Motor – (TP – Rs80, Neutral)
TVS reported 171,190 units of sales in December, a growth of 42% yoy and a 9% mom. This signifies a significant spurt in demand for its existing and new bikes post a slump in November. Three wheeler sales came at 3,431 units. Going forward, we expect the company to report numbers of close to 1.8 lakh per month, which will be growth over December numbers due to wholesale demand for its new models Jive and Wego picking up and three wheeler sales picking up in the traditionally strong quarter.

Hero Honda – (Under Review)
Hero Honda reported a 16% yoy strong growth to 5.01 lakh units in December, but it was a ~19% spurt mom. Though the company has cleared clouds over the royalty issue post its split with Honda and has posted stellar monthly sales numbers, we remain cautious on the stock as it will continue to face added pressures from strengthening presence of Honda and aggressive strategies by its other competitors as well. Hence, we will take a closer look at the stock post Q3 results and revise our rating and target price accordingly.

Bajaj Auto – (TP – Rs 1630, Outperformer)
Though Bajaj Auto has posted its best ever December sales, they have fallen well short of their monthly guidance of 3 lakh units as they posted 2.76 lakh sales this month. It was a growth of just 10% yoy and a dip of 18% mom. The company attributes this to capacity constraints and logistic issues. Henceforth they have guided us of getting back to the 3 lakh mark in each of the remaining 3 months.

Maruti Suzuki – (TP – Rs 1788, Outperformer)
Maruti’s December sales were 17% up yoy while 12% down on mom basis at ~99,000 units in line with our expectations as the company had its bi-annual maintenance shutdown at its various plants for 7 days in December. Due to this the production was low and thus sales. Domestically, the company reported sales close to 89,000 units while exports were close to the 10,000 mark as expected. Going forward, we believe Maruti will once again punch volumes anywhere in between 1,10,000 and 1,15,000 for the rest of the year as demand remains intact. For the full year, we expect volumes to be close to 1.2mn.

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Written by Fundamental Side

January 6, 2011 at 7:20 am