Auto Sector Update - August 2012 - Microsec

In August, performance remained muted for the auto industry as a whole owing to prevailing macroeconomic issues resulting in the plunging demand for automobiles. Maruti Suzuki's about month-long lockout at its Manesar plant has hit the company's volume significantly.

In Passenger car segment, Tata motors showed some improvement on back of recovery in Nano sales. However, demand for diesel variants like Indica and Indigo were muted. The net sales ofMaruti Suzuki hadslid by 50% in this segment, underpinned by lower production of Dzire and Swift, due to lockout in Manesar plant.

In the commercial vehicle segment, medium and heavy commercial vehicle (MHCV) sales remained weak, with Tata Motors reporting a decline of 12.10% YoY.

In the two-wheeler segment, Hero MotoCorp Bajaj Auto & TVS Motor sales declined due to sluggish demand from rural area.

Source : Equity Bulls

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