MOSL: AUTOMOBILES | August 2017 volumes-1. Maruti Suzuki, 2. Mahindra & Mahindra 3. Tata Motors, 4. Eicher Motors, 5. Ashok Leyland

​AUTOMOBILES | August 2017 volumes: 1. Maruti Suzuki, 2. Mahindra & Mahindra; 3. Tata Motors, 4. Eicher Motors, 5. Ashok Leyland, 6. TVS Motor, 7. Bajaj Auto, 8. Hero MotoCorp

1. Maruti Suzuki: Vol up 23.8% YoY to 163.7k units (in line v/s est. of 162k); Domestic sales grew at a healthy 26.7% YoY to 152k

• ​MSIL’s Aug-17 wholesales came in line at 163,701 units (est. 162,029 units), up 23.8% YoY. YTD growth was at 17%, with residual monthly run-rate at 154.6k units.
  
• Domestic volumes grew by 26.7% YoY to 152k (better than est. of 150k), led by growth in compact (+52.4% YoY) and UV (+27.6% YoY) segments.
  
• The compact segment grew 18% YoY, led by Baleno and New Dzire sales.
  
• Mid-size segment increased 3.9% YoY, led by Ciaz, despite an increase in prices due to higher taxes on hybrid cars post GST. Ciaz clocked sales of 6,457 units.
  
• UVs continued their momentum, with 27.6% YoY growth, primarily aided by incremental volumes of Vitara Brezza, which continues to enjoy a healthy waiting period.
  
• Export volumes declined 4.7% YoY to 11,701 units (est. of 12,000 units).
  
• The stock trades at 27.7x/20.9x FY18E/19E consolidated EPS of ~INR281/375. Maintain Buy.
  

Mahindra & Mahindra: Vols at 58.6k units, up 8.3% YoY (below est. of 60.5k); Tractor volumes in-line at 16.5k, UV sales below estimates

• ​MM volumes increased 8.3% YoY to 68.6k units (est. of 60.5k units), supported by 22% growth in tractors volume and 6.6% growth in UV volumes.
  
• Tractors sales at 16.5k were in line, helped by domestic tractor sales growth of 24% and exports growth of 4%.
  
• UV (incl. pick-ups) sales increased 6.6% YoY to 37.2l units (est. 38.7k units).
  
• Momentum in pick-ups continued with 18% YoY growth, while passenger utility vehicles reported growth of 7% YoY.
  
• LCV (>3.5t) sales declined 27% YoY, while M&HCV sales increased 45%.
  
• 3W volumes declined 17% YoY to 3,906 units (est. of 4,250 units).