MOSL: AUTOMOBILES | NOV-17 VOLUMES-1. Maruti Suzuki, 2. Mahindra & Mahindra, 3. Tata Motors, 4. Eicher Motors, 5. Ashok Leyland, and 7. TVS Motor

​Automobiles | NOV-17 VOLUMES: 1. Maruti Suzuki, 2. Mahindra & Mahindra, 3. Tata Motors, 4. Eicher Motors, 5. Ashok Leyland, and 7. TVS Motor

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Maruti Suzuki: Volumes up 9.5% YoY to 146.4k units (below est. of 150.5k); Domestic sales grew 9.9% YoY to 136k

• -MSIL’s Sep-17 wholesales came in at 146,446 units (+9.5% YoY), marginally lower than our estimate of 150,456 units. YTD growth was at 14.7%, with a residual monthly run-rate of 153k units.
• -Domestic volumes grew 9.9% YoY to 136k (est. of 139.5k), led by growth in the compact (+18.8% YoY) and UV (+29.8% YoY) segments.
• -Growth in the compact segment was led by Baleno and new Dzire, while that in UVs was led by Brezza and new S-cross.
• -Ciaz sales declined 35.4% YoY to 4.1k (est. of 4.8k).
• -Export volumes increased 4.2% YoY to 10,446 units (est. of 11,000 units).
• -The stock trades at 28.6x/21.6x FY18E/19E consol. EPS of ~INR281/375. Maintain Buy.

Mahindra & Mahindra: Volumes down 5.9% YoY to 91.4k units (above est. of 85.3k); Tractor volumes in-line at 40.3k units; UV, 3W sales above estimates

• ​MM’s volumes declined 5.9% YoY to 91.4k units (est. of 82.3k units), led by a decline in tractor and UV volumes.
  
• Tractors sales of 40.3k (-10.9% YoY) were in line with estimate, as domestic sales and exports declined 10% YoY and 23% YoY, respectively.
  
• UV sales (incl. pick-ups) stood at 43.8k units (-3.1% YoY), above estimate of 39k.
  
• Momentum in pick-ups continued with 5% YoY growth, while passenger utility vehicles reported a decline of 6% YoY.   
  
• LCV (>3.5t) sales grew by 17% YoY and M&HCV sales by 59% YoY.
  
• 3W volumes increased 3% YoY to 6,1k units (est. of 5k units).
  
• Speaking on the monthly performance, Rajan Wadhera, President, Automotive Sector, M&M Ltd. said, “The auto industry has had a mixed month. The build up to Dhanteras & Diwali was good, but the demand tapered off subsequently. Last year all festivals were in the month of October and the industry volumes had a high base. This year, September and October combined, we have grown by 7.9% in Auto Division. Going forward we enter into a year-end period of lower sales. Our refreshes & new variants, that have been launched, will carve out a niche and we expect to sustain the growth momentum for the remaining period of the current financial year.”