Business Sphere - - IN THE NEWS -

Pas­sen­ger ve­hi­cle sales in In­dia crossed 30 lakh mark for the first time in 2017, grow­ing at a five-year high of 8.85 per cent on the back of ro­bust de­mand for util­ity ve­hi­cles. Ac­cord­ing to the data re­leased by the So­ci­ety of In­dian Au­to­mo­bile Man­u­fac­tur­ers (SIAM), pas­sen­ger ve­hi­cle sales in 2017 stood at 32,29,109 units as against 29,66,603 units in 2016, a growth of 8.85 per cent. With sales re­main­ing in the pos­i­tive ter­ri­tory dur­ing the first three quar­ters of the cur­rent fis­cal, SIAM has pegged the seg­ment to grow by 9 per cent against a pre­vi­ous fore­cast of 7-9 per cent in 2017-18. In 2017 year, al­though car re­mained the main­stay of the PV seg­ment grow­ing by 5.13 per cent at 21, 68,151 units as against 20, 62,357 units in 2016, it was the growth of util­ity ve­hi­cles (UV) that stood out last year. UV sales stood at 8, 70,060 units in 2017 as against 7,24,522 units in 2016, up 20.09 per cent. Be­sides, a record 1, 91, 76,905 two-wheel­ers were sold last year, up 8.43 per cent from 1, 76, 86,685 units sold in 2016. "In 2017, for the first time more than 3.2 mil­lion pas­sen­ger ve­hi­cles were sold in the do­mes­tic mar­ket. Last year also saw record sales of 19 mil­lion two wheel­ers," SIAM Deputy Di­rec­tor Gen­eral Su­gato Sen said.

In terms of growth rate, PV sales in 2017 were the fastest since 2012 when it rose by 9.77 per cent. SIAM said ve­hi­cle sales across cat­e­gories, in­clud­ing CVs and two-wheel­ers, grew by 8.39 per cent to 2, 37, 39,780 units in 2017 as com­pared with 2, 19, 01,703 units in 2016. On the back of strong per­for­mance dur­ing the first three quar­ters of the cur­rent fis­cal, Sen said SIAM has ze­roed in on 9 per cent growth for the PV seg­ment. For the com­mer­cial ve­hi­cles, he said it has been re­vised up­wards to 13 per cent from an ear­lier es­ti­mate of 4-6 per cent, while for two-wheel­ers it has been pegged at 12 per cent against a pre­vi­ous fore­cast of 9-11 per cent. In 2016-17 fis­cal, PV sales had grown by 9.23 per cent, CVs by 4.16 per cent and two wheel­ers by 6.89 per cent. Com­ment­ing on the mar­ket en­vi­ron­ment, Sen said the auto in­dus­try, ex­cept for CVs, has now been now been able to re­cover from de­mon­eti­sa­tion. He, how­ever, added that while some mem­bers were hav­ing some is­sues with re­gards to the GST, SIAM ex­pects them to be set­tled by March. In De­cem­ber, pas­sen­ger ve­hi­cle sales rose 5.22 per cent to 2,39,712 units from 2,27,823 units in De­cem­ber 2016. Do­mes­tic car sales, how­ever, de­clined marginally to 1,58,326 units as against 1,58,617 units in De­cem­ber 2016. Mar­ket leader Maruti Suzuki In­dia posted a growth of 11.44 per cent at 1,18,560 units, while ri­val Hyundai Mo­tor In­dia was up marginally at 40,158. Mahindra & Mahindra saw sales drop by 6.99 per cent at 15,531 units. Homegrown ri­val Tata Mo­tors saw a growth of 33.94 per cent at 16,089 units in De­cem­ber 2017. To­tal two-wheeler sales in De­cem­ber rose 41.45 per cent to 12, 87,592 units com­pared to 910,276 units in the year-ago month. Mo­tor­cy­cle sales last month rose 40.31 per cent to 7, 88,156 units as against 5, 61,710 units a year ear­lier. Mar­ket leader Hero Mo­to­Corp posted do­mes­tic sales of 3, 98,816 units as against 2, 79,448 units in the year-ago month, up 42.71 per cent. Ri­val Ba­jaj Auto saw its bike sales rise 5.87 per cent to 1, 12,930 units as against 1, 06,665 units in the­same month last year. Honda Mo­tor­cy­cle and Scooter In­dia (HMSI) saw its sales rise by 133 per cent to 124425 units as against 53,400 units in De­cem­ber 2016. In the scoot­ers seg­ment, to­tal sales last month were at 4, 32,429 units as against 2, 84,405 units in De­cem­ber 2016, up 52.05 per cent. Seg­ment leader HMSI posted sales of 2,38,820 units as against 1,51,758 units in the year-ago month, up 57.36 per cent, while Chen­nai-based TVS Mo­tor Co had sales of 80,140 units as com­pared to 52,137 units in De­cem­ber 2016, a jump of 53.71 per cent. Hero Mo­to­Corp's scooter sales were at 57,054 units last month as against 32,785 units in Novem­ber last year, up 74.02 per cent. Sales of com­mer­cial ve­hi­cles were up 52.62 per cent to 82,362 units in De­cem­ber, SIAM said. Ve­hi­cle sales across cat­e­gories reg­is­tered a rise of 36.39 per cent to 16,66,646 units from 12,21,969 units in De­cem­ber 2016, it added. Key De­vel­op­ments and Out­look – Q3 FY 18 1. Net Rev­enues at Rs 1,784 crores vs Rs 1,365 crores over same pe­riod last year: a. Chem­i­cals – Vol­umes gain of 34% on ac­count of full uti­liza­tion of ex­panded ca­pac­i­ties at Bharuch, sup­ported by firm prices. b. Su­gar – Vol­umes were up 19% on ac­count of early com­mence­ment of sea­son, share of byprod­ucts in­creas­ing. 2. PBDIT stood at Rs 347 crores vs Rs.200 crore over same pe­riod last year: a. Chem­i­cals –Vol­ume gains com­ple­mented by firm re­al­iza­tions. Costs, par­tic­u­larly coal, have started ris­ing. b. Su­gar – Prof­its de­clined due to sharp drop in prices of su­gar and by prod­ucts, partly mit­i­gated by higher vol­umes of su­gar and power sales. c. SFS – growth in value added in­puts led to in­crease in prof­its. d. Fen­esta – Turnover growth led by higher de­liv­er­ies & ex­e­cu­tion led to profit growth. 4. PAT up by 56% YoY to Rs 213 crores. EPS for the quar­ter at Rs 13.1 up from Rs 8.4 in Q3 FY’17 5. Gross Debt as on Dec 31, 2017 stood at Rs. 631 crores vs. Rs 964 crore as on Dec 31, 2016. Cash and Cash equiv­a­lents stood at Rs. 454 crore vs Rs. 190 crore for the same pe­riod. 6. Projects un­der im­ple­men­ta­tion at in­vest­ment of Rs.1200 crores over next two years in Su­gar and Chloro-Vinyl seg­ments, to be com­mis­sioned in phases. 7. Credit Rat­ing - CRISIL has as­signed high­est rat­ing of “A1+” to Com­mer­cial Pa­per Pro­gramme i.e. same as the rat­ing as­signed by ICRA.

SIAM Deputy Di­rec­tor Gen­eral Su­gato Sen

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.