India Auto Sales Report – Q1 update – Surprising results from Tata Motors and M&M

M&M profits jumped and volumes jumped even better  while JLR seemed to underwrite Tata Motors’ bright future even as Domestic sales recovered. 

EBITDA margins of 15% do not engender much confidence (incl other income) in M&M and rival tata Motors is up 16% in the last two weeks as those following at ET and business Standard have tapped on since Monday M&M has grown EBITDA by over 1% this year and futre improvements have likely not plateaued out. 

M&M Sales rose 40% and it was unfortunately missed in the morning report rush today as it was a key highlight of India’s ever so strong and ever so least expectant results season

Net profits were a big win with a score of INR 7.26 B. In volumes, Sales of new look “SUVs” from the M&M stable has risen 32% for th eyear with MUVs and SUVs both vying for customer attention as Ford and GM models get stale and refuse to ramp up volumes for the US/China based majors. 58,615 units were sold in the three months ending June 2012

Tractor sales are lower at just 56.820. Tractor exports were another 3000 and the Domestic Sales were a 41% market share with a 2% volume expansion over June 2011 

Direct costs (RM) are up to 52% of sales of INR 9248 Crores or INR 92.5B M&M SUV export markets are in Latin America and Safari country rising to 7,850 units Seemingly realisations grew more than 20% per vehicle in over June 2011

Tata Motors reported a deep cliff in Domestic car sales last year and continues to bleed share in this market despite improvement in production since. Results are presented at 5 pm today with a topline of INR 470 B with nearly 30000 units of Jaguar and Rovers sold in the European and even China markets. Domestic production for July including its Trucks and other Commercial Vehicles as 61,000 and Sales barely keeping pace at 68,000 with 21000 Cars and 5000 utility vehicles sold in july in India and production much lesser than that







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