Auto sales numbers for June and that trade deficit

Trading sentiment on the bourses is coasting but the May Exports up by 56% to $25.4 bln are still crying a sorry state of the economy. Up 56% on a bad start to last fiscal’s stellar journey(yoyo basis, pun intended) , the cost of imports has finally negated all the good from that ride. Imports are also up 54% and the monthly trade deficit a $15 bln compared to the fourth quarter drivedown (seasonal) to $6/$5.8 bln)  An annual 25% increase in Exports would see exports rise to $300bln but the deficit is said to rise to $150 bln for the year unless India’s crude basket gets successfully renegotiated downward. India is also growing its deficit with China much like the US now near $12bln in May( Oil imports are up 18-20% for the month

As expected Auto sales are down to a run rate of 160K for 4 wheelers but 2 wheelers continue to report an uptick. Bajaj has infact managed a 20% share in that for its sporty bikes in the monthly saga showing a unique cross segmentation from a good jobs, good pay economy running thru the channel of inflation pain and food supply chain destruction Maruti sales are back to 71K for domestic and Tata to 23k for the month of June. Further competition from Figo and now the Liva from Toyota will strain Maruti but it remains a profitable and efficient operation in a growing market and will also benefit from cars it makes for VW. Auto sales at both domestic champions are down almost 10% from May 2010,. In two wheelers Bajaj Auto is expected to maintain its sterling May numbers of 360,000 and a healthy MOM growth as well

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