May Monthly sales data suggest that PV and CV sales continue to lead the charts when it comes to growth comparison with the rest of the segments on Month- on –Month basis. The passenger vehicle companies in India are sitting at record levels of order bookings but the production has been constrained due to chip shortage situation. But for May Month companies from the likes of Maruti Suzuki, Tata Motors and M&M posted decent growth.
Maruti Suzuki sales were up 7% on MoM basis, which was slightly better than estimate at 1.61Lk units. Tata Motors in PV segment too posted a growth of 4% on MoM basis with highest ever sales number for this division since inception and EV sales yet again touching a new record level. But the Outperformer was M&M with a sales jump of 18% on MoM basis at 53726 units which was way above the estimated number and surely helping the stock to touch yet another life high level.
Commercial Vehicle Sales growth was also decent in May 2022 with Ashok Leyland performing the best among the pack. Ashok Leyland sold 13273 Units in May vs 11847units in April 2022. While for Tata Motors and Eicher Motors VECV the sales growth has been in Single digit. The fuel price cut surely helping the demand momentum for the segment.
It was a mixed bag when it comes to 2W sales. Bajaj Auto disappointed the street this time witnessing sales degrowth of 11% on MoM basis. The exports sales for the company was at 1.63Lk Units versus street estimate of around 2Lk units registering a decline of 21% on MoM in overseas business. While on other hand, TVS Motors overseas sales was almost flat MoM at 1.1Lk units. TVS Motors do highlight that Shortage in the supply of semiconductors has impacted the production and sales of premium two-wheelers but Some improvement has been seen this month. The company is Optimistic that volumes will revive to normal levels once the semiconductor supplies improve.
Improvement in sentiment of the Rural economy was something what was visible in numbers of the tractor companies this time. Escorts and M&M are hopeful of more catchup in sales ahead and in month of May they posted sales at 8421units and 35722 units respectively.
