th

Automobile Industry Monthly Update 7 March, 2011

Despite negative headwinds in the form of increase in prices and hardening monetary policies, auto-makers continue to deliver strong numbers.
However, the strong volume growth might be partially attributed to pre emptive purchases in anticipation of a hike in excise duties in the Union Budget
2011. In February most of the automakers registered double digit growth across all segments. Market leader Maruti Suzuki India Ltd posted a 15.5%
growth in total sales driven by a robust 19.8% growth in the domestic sales. On the other hand, auto major Mahindra & Mahindra has grown handsomely
at 36.8% in the tractor segment while its automotive segment grew by a good 19.7% (yoy). In the two wheeler space, Bajaj Auto underperformed its
peers in terms of volume growth while TVS Motors registered the highest volume growth driven majorly by stellar growth registered by the scooter
segment.

Outlook – Positive

Rising input costs, hardening monetary policies and increasing fuel prices were unable to deter the buoyant consumer demand which is
expected to be sustained given no hike in the excise duty despite strong anticipations. The continued focus of the government on
infrastructure and rural centric schemes shapes well for most of the automakers who are witnessing strong traction in the rural demand.
Despite negative headwinds, strong volume guidance given by most automakers indicates a favorable environment for FY12 driven mostly by
strong economic recovery, favorable demographics and rising rural consumption.
 Total motor vehicles and car sales (Quarterly)
1000000

900000

800000

700000

600000

500000

400000

300000

200000

100000

Total Motor Vehicles Sales Total Car Sales

 Total motor vehicles and car sales growth (YOY)
60%

50%

40%

30%

20%

10%

0%

-10%

-20%

Total motor vehicles sales growth YOY Total car sales growth YOY
 Total two wheeler & motorcycle sales (Quarterly)
3500000

3000000

2500000

2000000

1500000

1000000

500000

Total Two Wheeler Sales Total Motor Cycles Sales

 Total two wheeler & motorcycles sales growth (YOY)
50%

40%

30%

20%

10%

0%

-10%

-20%

Total motorcycles sales growth YOY Total two wheeler sales growth YOY
Maruti Suzuki India Ltd

Maruti Suzuki registered a robust double digit increase of 15.5% yoy and sold 111,645 units in February 2011 as compared to 96,650 cars in February
2010. The carmaker sold 101,543 cars in the domestic market with robust performance across most segments (except A1). The A2 segment registered
a double digit growth of 19.4%. The A3 segment (SX4 and Dzire) grew by a robust 27.0% to 13,024 units as against 10,254 units in February 2010. The
C segment consisting of Omni, Versa and Eeco grew by 26.9% to 13,536 units as against 10,668 units sold in the corresponding previous month. The
company launched its premium car Kizashi in February. However, this month the car was only available for test runs and display, the numbers are
expected to flow in from March onwards. Exports remained muted for the company and declined by 15.0% yoy basis. The company has increased its
focus on non European markets to counter declining demand from European markets. The Non- European markets now constitute ~70% of the export
sales.

Maruti Suzuki India Ltd Feb-11 Feb-10 YOY % Jan-11 MOM % YTD FY11 YTD FY10 YOY %
A1 - M800 2,712 3,178 -14.7 1,876 44.6 23,570 30,266 -22.1
C - Omni, Versa, Eeco 13,536 10,668 26.9 13,945 -2.9 146,210 90,450 61.6
A2 - Alto, Wagon R, Estilio, Swift,
A-Star, Ritz 72,090 60,380 19.4 72,479 -0.5 730,092 578,427 26.2
A3 - SX4, Desire 13,024 10,254 27.0 11,930 9.2 117,372 88,862 32.1
Total Passenger Cars 101,362 84,480 20.0 100,230 1.1 1,017,244 788,005 29.1
MUV - Gypsy, Grand Vitara 156 285 -45.3 192 -18.8 5,046 3,255 55.0
Domestic sales 101,543 84,765 19.8 100,422 1.1 1,022,315 791,260 29.2
Exports sales 10,102 11,885 -15.0 9,321 8.4 126,738 131,982 -4.0
Total sales 111,645 96,650 15.5 109,743 1.7 1,149,053 923,242 24.5
 Total Vehicle sales and its growth in % YOY
140000 80%
120000 60%
100000
40%
80000
20%
60000
0%
40000
20000 -20%
0 -40%
Jun-08 Oct-08 Feb-09 Jun-09 Oct-09 Feb-10 Jun-10 Oct-10 Feb-11
Total vehicle sales Vehicle sales growth YOY
Domestic A2 sales and its growth in % YOY
100000 80%

80000 60%
40%
60000
20%
40000
0%
20000 -20%
0 -40%
Jun-08 Oct-08 Feb-09 Jun-09 Oct-09 Feb-10 Jun-10 Oct-10 Feb-11
Domestic A2 sales A2 sales growth YOY
Other vehicles sales and its growth in % YOY
50000 100%
80%
40000
60%
30000 40%
20000 20%
0%
10000
-20%
0 -40%
Jun-08 Oct-08 Feb-09 Jun-09 Oct-09 Feb-10 Jun-10 Oct-10 Feb-11
Other vehicles sales Other sales growth YOY
Mahindra & Mahindra Ltd

Driven by strong rural demand and easing capacity constraints, the tractor segment reported a robust 36.8% yoy growth and sold 19,041 units in
February 2011 as against 13,920 units sold in February 2010. The automotive division too registered a good 19.7% growth with domestic sales leading
the way with 20.3% yoy growth. The company sold 31,967 units in the domestic market as against 26,580 units sold in February 2010. Exports sales for
the month slowed down and registered a meager 7.4% yoy growth. M& M sold 1411 units in the overseas market a decline of 33.3% mom basis. The
three wheeler sales grew by 57.2% having sold 5,725 units in February 2011 compared to 3,641 units in February 2010. Government’s continued focus
on Infrastructure development and rural centric schemes in Budget 2011, augurs well for Mahindra & Mahindra.

M&M Feb-11 Feb-10 YOY % Jan-11 MOM % YTD FY11 YTD FY10 YOY %
UV's 24,191 21,546 12.3 26,281 -8.0 236,656 202,876 16.7
Logan - MRPL 1,151 537 114.3 1,120 2.8 8,991 4,981 80.5
LCV's - Inclusive of MNAL 900 856 5.1 1,023 -12.0 10,197 8,845 15.3
Total 4 wheelers 26,242 22,939 14.4 28,424 -7.7 255,844 216,702 18.1
3 wheelers 5,725 3,641 57.2 6,177 -7.3 66,687 40,067 66.4
Domestic Sales 31,967 26,580 20.3 34,601 -7.6 322,531 256,769 25.6
Exports - M&M 1,411 1,314 7.4 1,713 -17.6 15,104 8,813 71.4
Exports - Logan - MRPL - - - 404 - 1,904 1,000 90.4
Export Sales 1,411 1,314 7.4 2,117 -33.3 17,008 9,813 73.3
Total Sales (A) 33,378 27,894 19.7 36,718 -9.1 358,451 266,582 34.5

Tractors
Domestic 18,134 13,140 38.0 19,430 -6.7 183,057 150,593 21.6
Exports 907 780 16.3 1,069 -15.2 10,749 7,876 36.5
Total Sales (B) 19,041 13,920 36.8 20,499 -7.1 193,806 158,469 22.3

Grand Total sales (A+B) 52,419 41,814 25.4 57,217 -8.4 533,345 425,051 25.5
 Total sales excluding 2 wheelers & tractors and its growth in % YOY
40000 150%
35000
100%
30000
25000 50%
20000
15000 0%

10000
-50%
5000
0 -100%
Jun-08 Oct-08 Feb-09 Jun-09 Oct-09 Feb-10 Jun-10 Oct-10 Feb-11

Total sales excluding 2 wheelers and tractors Growth YOY excluding 2 wheelers and tractors

Total tractor sales and its growth in % YOY

30000 120%
100%
25000
80%
20000
60%
15000 40%
20%
10000
0%
5000
-20%
0 -40%
Jun-08 Oct-08 Feb-09 Jun-09 Oct-09 Feb-10 Jun-10 Oct-10 Feb-11

Tractor Sales by Mahindra & Mahindra Ltd. Tractor Growth in YOY

Tata Motors Ltd

Tata Motors’ total sales (including exports) in February 2011 were 77,543 vehicles, a growth of 11.7% over 69,427 vehicles sold in February 2010. The
domestic M&HCV segment registered a 1.1% yoy growth majorly on account of relatively high base in the previous corresponding month. Domestic LCV
segment continued to show good growth and was up 8.0% yoy. The best performer for the month, the domestic Passenger Car segment reported a
robust 18.7% growth on account of strong growth across all products. The Indigo range of product registered 22.0% yoy growth while the Indica range
registered a 12.7% yoy increase. Small Car Nano continued its growth momentum and the company sold 8,262 units of Nano in February 2011 as
against 6,703 units sold in January 2011.

Tata Motors (Standalone) Feb-11 Feb-10 YOY % Jan-11 MOM % YTD FY11 YTD FY10 YOY %
M&HCV 17,632 17,441 1.1 16,487 6.9 168,789 134,290 25.7
LCV 23,498 21,764 8.0 23,776 -1.2 228,180 196,040 16.4
UV 4,637 4,005 15.8 4,462 3.9 37,460 29,635 26.4
Cars 27,272 22,980 18.7 25,750 5.9 233,361 177,534 31.4
Domestic Sales (A) 73,039 66,190 10.3 70,475 3.6 667,790 537,499 24.2

M&HCV 1,488 972 53.1 2,083 -28.6 16,402 11,205 46.4

LCV 2,756 1,595 72.8 2,445 12.7 28,196 12,970 117.4
UV 22 43 -48.8 61 -63.9 728 552 31.9
Cars 238 627 -62.0 359 -33.7 6,786 5,308 27.8
Export Sales (B) 4,504 3,237 39.1 4,948 -9.0 52,112 30,035 73.5

Total Sales (A+B) 77,543 69,427 11.7 75,423 2.8 719,902 567,534 26.8
 Total Vehicles sales and its growth in % YOY
100000 150%

80000 100%

60000 50%

40000 0%

20000 -50%

0 -100%
Jun-08 Oct-08 Feb-09 Jun-09 Oct-09 Feb-10 Jun-10 Oct-10 Feb-11
Total vehicle sales Vehicle sales growth YOY
UV + Car sales and its growth in % YOY
35000 80%
30000 60%
25000
40%
20000
20%
15000
0%
10000
5000 -20%
0 -40%
Jun-08 Oct-08 Feb-09 Jun-09 Oct-09 Feb-10 Jun-10 Oct-10 Feb-11
UV+Cars UV+Cars sales growth YOY
H, M & LCV sales and its growth in % YOY
50000 200%

40000 150%
100%
30000
50%
20000
0%
10000 -50%
0 -100%
Jun-08 Oct-08 Feb-09 Jun-09 Oct-09 Feb-10 Jun-10 Oct-10 Feb-11
H,M&LCV H,M&LCV sales growth YOY
Ashok Leyland Ltd

Ashok Leyland reported an over 24.5% jump in total sales to 9,800 units in February 2011 compared to the same month last year. Its domestic sales
grew by 26.7% and sold 8,984 units in February 2011. The export sales were up by meager 5.0% yoy to 816 units. Strong demand from the rural
segment and increased infrastructure spending would drive volumes for the company.

Ashok Leyland Feb-11 Feb-10 YOY % Jan-11 MOM % YTD FY11 YTD FY10 YOY %
MDV Passenger 1,638 1,621 1.0 1,676 -2.3 18,113 14,142 28.1
MDV Goods 7,316 5,364 36.4 5,154 41.9 53,791 33,771 59.3
LCV 30 107 -72.0 50 -40.0 584 735 -20.5
Domestic Sales (A) 8,984 7,092 26.7 6,880 30.6 72,488 48,648 49.0

MDV Passenger 498 310 60.6 420 18.6 4,385 1,795 144.3
MDV Goods 285 420 -32.1 410 -30.5 4,922 3,142 56.7
LCV 33 47 -29.8 1 3200.0 143 274 -47.8
Export Sales (B) 816 777 5.0 831 -1.8 9,450 5,211 81.3

Total Sales (A+B) 9,800 7,869 24.5 7,711 27.1 81,938 53,859 52.1
 Total vehicles sales and its growth in % YOY
12000 300%
10000
200%
8000
6000 100%
4000
0%
2000
0 -100%
Jun-08 Oct-08 Feb-09 Jun-09 Oct-09 Feb-10 Jun-10 Oct-10 Feb-11
Total vehicle sales Vehicle sales growth YOY
Passenger vehicle sales and its growth in % YOY
3000 150%
2500 100%
2000
50%
1500
0%
1000
500 -50%

0 -100%
Jun-08 Oct-08 Feb-09 Jun-09 Oct-09 Feb-10 Jun-10 Oct-10 Feb-11
Passenger vehicle sales Passenger sales growth YOY
Goods vehicle sales and its growth in % YOY
10000 500%
400%
8000
300%
6000 200%
4000 100%
0%
2000
-100%
0 -200%
Jun-08 Oct-08 Feb-09 Jun-09 Oct-09 Feb-10 Jun-10 Oct-10 Feb-11
Goods vehicle sales Goods sales growth YOY
Hero Honda Motors Ltd

Driven by strong demand at the retail level, sales volumes of Hero Honda registered a double digit growth of 23.5% to 472,055 units in February’11.
Refreshed product portfolio on account of recent product launches continues to drive growth for the company. Its scooter model ‘Pleasure’ is also
performing well. The average monthly run-rate of Pleasure is 30,000 per month.

Hero Honda Feb-11 Feb-10 YOY % Jan-11 MOM % YTD FY11 YTD FY10 YOY %
Total Sales - Motorcycles 472,055 382,096 23.5 466,524 1.2 4,886,592 4,185,492 16.8

Sales and its growth rates in % YOY

600000 80%
70%
500000 60%
400000 50%
40%
300000 30%
20%
200000 10%
100000 0%
-10%
0 -20%
Jun-08 Oct-08 Feb-09 Jun-09 Oct-09 Feb-10 Jun-10 Oct-10 Feb-11

Sales in Units Growth Rates YOY

Bajaj Auto Ltd

Bajaj Auto, the country’s second-largest motorcycle manufacturer, reported a 21.7% rise in total sales on account of robust growth in the two wheeler
segment. In the two wheeler segment, the company sold 286,657 units registering a strong growth of 22.1% with Bajaj and Discover accounting for
67.0% of the sales. The company has launched the new edition of 100 cc Discover with improved features which would further bolster two wheeler
sales. Boost by easing capacity constraint, the three-wheeler sales volume increased by 18.4% to 40,217 units. Driven by easing-up of supply side
constraint in two-wheelers and strong order book for three-wheelers we expect Bajaj’s volumes to further improve in coming months.

Bajaj Auto Feb-11 Feb-10 YOY % Jan-11 MOM % YTD FY11 YTD FY10 YOY %
Motorcycles 286,657 234,623 22.2 275,622 4.0 3,112,629 2,262,017 37.6
Scooters - 87 - - 27 4,790 -99.4
Total 2 wheelers 286,657 234,710 22.1 275,622 4.0 3,112,656 2,266,807 37.3
3 wheeler 40,217 33,968 18.4 37,961 5.9 403,535 311,592 29.5
Total sales 326,874 268,678 21.7 313,583 4.2 3,516,191 2,578,399 36.4

Domestic 224,441 191,036 17.5 210,057 6.8 2,124,825 1,752,435 21.2

Exports 102,433 77,642 31.9 103,526 -1.1 1,391,390 825,964 68.5

Two wheelers sales and its growth in % YOY

350000 120%

300000 100%
80%
250000
60%
200000 40%
150000 20%
0%
100000
-20%
50000 -40%
0 -60%
Jun-08 Oct-08 Feb-09 Jun-09 Oct-09 Feb-10 Jun-10 Oct-10 Feb-11
Two wheelers sales in units Growth Rates YOY
TVS Motor Company Ltd

Chennai-based TVS Motor Company logged 24.3% growth in total sales at 177,412 units, compared to 142,676 units in the previous corresponding
year. Domestic two wheeler sales of the company increased by 24.8 per cent with sales of 151,526 units in February 2011 against 121,403 units
reported in February 2010. The scooter segment continued its strong momentum & reported a stellar 49.3% yoy growth and outperformed motorcycles
sales which instead grew by 12.7%. The company sold 61, 403 units of mopeds which grew by 22.5% yoy. Exports for the company slowed down
slightly and registered a 13.2% yoy growth. The company plans to launch upgraded versions of the present models in the next few months.

TVS Motors Feb-11 Feb-10 YOY % Jan-11 MOM % YTD FY11 YTD FY10 YOY %
Motorcycles 71,462 63,394 12.7 67,721 5.5 757,189 576,818 31.3
Scooters 40,335 27,017 49.3 40,736 -1.0 426,609 280,997 51.8
Mopeds - Scotteretes (bf) 61,403 50,133 22.5 53,268 15.3 636,229 517,361 23.0
Total 2 Wheelers 173,200 140,544 23.2 161,725 7.1 1,820,027 1,375,176 32.3
3 Wheelers 4,212 2,132 97.6 3,427 22.9 35,433 12,729 178.4
Total sales 177,412 142,676 24.3 165,152 7.4 1,855,460 1,387,905 33.7

2 wheelers - Domestic 151,526 121,403 24.8 142,227 6.5 1,614,970 1,229,829 31.3
2 wheelers - Exports 21,674 19,141 13.2 19,498 11.2 208,683 145,347 43.6

Two wheelers sales and its growth in % YOY

250000 50%

40%
200000
30%
150000 20%

100000 10%

0%
50000
-10%

0 -20%
Jun-08 Oct-08 Feb-09 Jun-09 Oct-09 Feb-10 Jun-10 Oct-10 Feb-11

Two wheeler sales in units Growth Rates YOY

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