FREE

MOSL: AUTOMOBILES-PV volume momentum intact-Growth driven by compact UVs, compact car and compact sedan segment

Automobiles: PV volume momentum intact; Growth driven by compact UVs, compact car and compact sedan segment

 We analyzed the brand-wise data for the domestic PV industry. PV industry volume momentum continued with ~8% growth FY18YTD, driven by compact UVs, compact sedan and compact car segments grew 28.5%, 7.5% and 7.4% YoY, respectively. However, the mini segment declined 1.6%, and the mid-size and UV-2 segments grew just 1% and 0.4% YoY, respectively. Key highlights:

• Premiumization trend continues with share of product priced >INR800k increasing to ~43% of domestic PV volumes (v/s ~41% in FY17).
• MSIL’s market share has corrected in last couple of month to ~49% now (partly impacted by old Swift phase-out), with FY18YTD share at ~50%. Baleno ramp-up continues with record volumes of 17.7k units (+70% YoY) while Ignis recording all-time high volumes of ~5.4k units (+13% YoY).
• Ciaz sales recovered sharply post adverse GST rate on hybrids, with monthly volumes are back at 5.1k units, enabling it to partially regain lost market share in the mid-size segment (29.5% in January 2018).
• TTMT’s PV volume growth of 18.2% YoY in YTDFY18 was led by new products, which grew 145% YoY, despite phasing out of old models (decline of ~52%).TTMT’s market share recovery continues with ~7.7% market share in Jan-18 (v/s 5.7% market share in FY17).
• While M&M is witnessing good growth for Bolero (~33% YTD) and Scorpio (~9% YTD) benefitting from rural recovery, it market share loss continues with UV market share at ~25.4% in FY18YTD (v/s ~29.4% in FY17; ~26.2% in Jan-18).