Vikram S Kirloskar, President, SIAM says the auto industry has seen no pick in sales despite excise duty cut. In fact, he says, the month of April was a very bad month in terms of sales. Barring two-wheelers, all other sectors have seen a degrowth, he said.
Among the two-wheelers too, the scooter segment seems to have picked up faster than motorcyles. The strength seen in the sale of two-wheelers is likely to continue, he added.
Auto sales seem to be a downward trajectory with April seeing the worst decline in monthly car sales since May 2013.
However, there have been some pick-up in enquiries for the commercial vehicle space said Kirloskar in an interview to CNCB-TV18.
Below is the interview of Vikram S Kirloskar with Anuj Singhal and Ekta Batra on CNBC-TV18.
Anuj: One thing which we want to understand is that clearly the excise cut is not making any difference, why is that? Do you think everyone is waiting for the new government and the kind of policy they would follow or is there something more to the kind of sales number that we have seen?
A: This April except for scooters and motorcycles to some extent the rest of the industry has been terrible. If I look at the pricing the excise duty cut was a fantastic thing that happened and some price reduction happened.
Looking at the pricing of our vehicles over the last 4-5 years compared to inflation, the price rises were much lower than inflation in the last five years. So, real prices of vehicles in the last five years have been lower. However, all this is not working and still the sales are coming down.
The reasons for the sales decline could be many. One could be the salary increase be much lower than inflation and hence could be driving sentiment in people for not taking risk of EMIs on cars or vehicles. Second thing is in the past I used to think that whenever the stock market did well, the higher price cars would do well and when the interest rates came down the lower price cars would do well. However, I don't think that is working as well either; so, I am completed foxed and I am not sure what would happen going forward.
Ekta: I am going to quiz you about the commercial vehicle (CV) sale recovery that a lot of financiers as well as some amount of anecdotal information from the analyst communities coming through that there is green shoots which are showing in the CV cycle at this point in time. Do you see that and that could be predicated on what is taking place with regards to the iron ore bans or rather the mining bans being lifted in Karnataka and Goa as well and that is one of the reasons why we are seeing some amount of an up move in sales, is that true then?
A: Commercial vehicles registered de-growth of 24 percent in April. I have been traveling around a little bit last few days and I have been hearing that there are better enquires for commercial vehicles coming up. So, I am hopeful.
I just hope there are lots of green shoots and they become into trees. The mining ban removals and other things like if power plants start moving, coal starts moving then it will certainly help. We need more inter-state traffic as well in terms of goods and stuff.
Ekta: The one thing that stood out was the two-wheeler sales which were up 11 percent for the month of April. So, that did well for a couple of key companies also. I think TVS Motor did quite well in their two wheeler sales, Bajaj Auto met what the street was expecting though it was low on year-on-year (YoY) basis. Your sense in terms of two – where the sales and where is this demand coming from?
A: Scooters even more so, if you saw. Scooters more than motorcycles but they have all done very well. It is obvious people need transport but maybe some are not willing to take the risk of buying a car but obviously people do need transport. I think this is one place where it is going ahead.
TVS Motor stock price
On May 12, 2014, at 14:14 hrs TVS Motor Company was quoting at Rs 118.85, up Rs 7.50, or 6.74 percent. The 52-week high of the share was Rs 120.05 and the 52-week low was Rs 28.10.
The company's trailing 12-month (TTM) EPS was at Rs 5.51 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 21.57. The latest book value of the company is Rs 31.28 per share. At current value, the price-to-book value of the company is 3.80.
Anda sedang membaca artikel tentang
Strength seen in 2-wheeler sales to continue: SIAM
Dengan url
https://kesehatanda.blogspot.com/2014/05/strength-seen-in-2-wheeler-sales-to.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Strength seen in 2-wheeler sales to continue: SIAM
namun jangan lupa untuk meletakkan link
Strength seen in 2-wheeler sales to continue: SIAM
sebagai sumbernya
0 komentar:
Posting Komentar