Two Wheeler Monthly Update January, 2014

SECTOR UPDATE

Two Wheeler Monthly Update

January, 2014


Hero MotoCorp

|CMP: `1,963|M.Cap:` 39,028 crore|

Marginal de-growth The country's largest two-wheeler maker, Hero MotoCorp witnessed a marginal degrowth of 3% in total sales at 524,990 units for Dec’13 as against 5,41,615 units in Dec’12. The company had adopted a fresh approach with increased focus on technology, innovation and youth-focused products. Additionally, it forayed in the new international markets namely, Central & Latin America and Africa.

Hero MotoCorp

Jan-14

Total Sales - Motorcycles

Jan-13 YOY %

561,253 557,797

0.6

Dec-13 MOM % 524,990

6.9

YTDFY14 5,217,407

YTDFY13 5,106,029

YOY % 2.2

Total vehicles sales and its growth in % YOY 7.0

25% 20% 15% 10% 5% 0% -5% -10% -15% -20% -25% -30%

6.0 Units in lakhs

5.0 4.0 3.0

2.0 1.0 0.0 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14

SECTOR UPDATE

The company is ready with its 'action-packed' plan for 2014 that includes radically new product launches, entry into new markets, clutter-breaking campaigns and continued network expansion.

Sales in Units

Growth Rates YOY

Source: HMCL, Ventura Research Estimates

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Bajaj Auto

|CMP: `1,836|M.Cap:` 53,331 crore|

De-growth!!! Owing to the slower growth in commercial vehicle and motorcycles, Bajaj Auto witnessed a sharp decline of 12.6% in total sales to 2,60645 units in Dec’13. The motorcycle sales were down by 12.6% at 260,645 units, while 3 wheeler sales slipped 18.6% at 37,131 units respectively. Nonetheless, exports were up 20% during Dec’13 at 1,50,753 units compared to 1,26,016 units in the same month last year. Bajaj Auto

Jan-14 281,390

Scooters

301,361

-

Total 2 wheelers

281,390

-6.6

-

260,645 -

301,361

-6.6

Dec-13 MOM %

-

8.0

YTDFY14

8.0

YOY %

2,877,799

3,198,771

-

-

2,877,799

3,198,771

-10.0

-

260,645

YTDFY13

-10.0 -

3 wheeler

36,781

46,263

-20.5

37,131

-0.9

373,964

404,473

-7.5

Total sales

318,171

347,624

-8.5

297,776

6.8

3,251,763

3,603,244

-9.8

Domestic

180,527

219,142

-17.6

147,023

22.8

1,913,367

2,277,715

-16.0

Exports

137,644

128,482

7.1

150,753

-8.7

1,323,012

1,310,634

0.9

Two Wheeler sales and its growth in % YOY 4.0 Units in lakhs

15% 10% 5% 0% -5% -10% -15% -20% -25%

3.0 2.0 1.0 0.0

Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14

SECTOR UPDATE

Motorcycles

Jan-13 YOY %

Two wheelers sales in units

Growth Rates YOY

Source: BAL, Ventura Research Estimates

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TVS Motors

|CMP: `79|M.Cap:` 3,772 crore|

Pickup in scooters sales is positive… TVS Motors reported a marginal growth of 2% in total sales to 1,59,495 units in the month of Dec’13 against 1,56,221 units during the same month of the previous year. Domestic two wheeler sales dipped slightly by 1.4% to 1,32,664 units from 1,34,566 units. Motorcycle sales declined 4.4% to 57,576 units as against 60,210 in the same month last year. However, scooter sales grew 37.6% to 41,817 units. Over the same period, 3 wheelers were up by 37% to 6,137 units.

TVS Motors

Jan-14

Jan-13 YOY %

Dec-13 MOM %

Motorcycles

65,449

64,555

1.4

57,576

13.7

662,560

627,180

5.6

Scooters

45,198

37,946

19.1

41,817

8.1

386,172

381,762

1.2

Mopeds

YTDFY14

YTDFY13

YOY %

68,929

69,012

-0.1

53,965

27.7

591,733

651,332

-9.2

179,576

171,513

4.7

153,358

17.1

1,640,465

1,660,274

-1.2

3 Wheelers

6,737

4,418

52.5

6,137

9.8

66,267

39,312

68.6

Total sales

186,313

175,931

5.9

159,495

16.8

1,706,732

1,699,586

0.4

2 wheelers - Domestic

156,138

154,107

1.3

132,664

17.7

1,439,652

1,485,582

-3.1

23,438

20,723

13.1

20,694

13.3

218,222

181,362

20.3

Total 2 Wheelers

2 wheelers - Exports

Two Wheeler sales and its growth in % YOY 2.0 Units in lakhs

20% 15% 10% 5% 0% -5% -10% -15% -20% -25% -30%

1.0

Motorcycles Mopeds - Scotteretes (bf)

Jan-14

Nov-13

Sep-13

Jul-13

May-13

Mar-13

Jan-13

Nov-12

Sep-12

0.0 Jul-12

SECTOR UPDATE

Total exports grew by 20.5% to 20,694 units in Dec’13, from 17,169 units in the month of Dec’12. Two wheeler exports registered a growth of 20.5% with sales growing from 20,694 units in Dec' 12 to 17,169 units in Dec’13.

Scooters Growth Rates YOY (RHS)

Source: TVS, Ventura Research Estimates

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SECTOR UPDATE


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