2nd September, 2013 : Comments by Amar Ambani, Head of Research, India Infoline
Monthly auto sales numbers also were disappointing. Tata Motors local vehicle sales fell 33% last month, while passenger car volumes at M&M slid 28%. Ashok Leyland total sales declined 24% yoy. However, Maruti Suzuki reported a robust 61% year-on-year jump in total sales in August at 87,323 units.
Commenting on the same, Amar Ambani, Head of Research at IIFL said, “Auto volumes for August 2013 were weaker than expected in few pockets such as M&HCVs and LCVs. Except for M&M’s tractor segment and HMSI’s strong 2-W performance, volumes were down on yoy basis in most segments. We expect this weakness to continue given the macro headwinds. 2-W pack could see relatively better performance in H2 FY14 on the back of better than normal monsoons. Our top picks in the sector are M&M and Maruti Suzuki.