Motor car registrations high at 10,054 in November: JB Securities

Dec 18, 2015 (LBO) – Vehicle registration momentum continued into the month of November due to the pre-Nov 20 budget surge and relaxation of LTV rule, JB Securities said in a research note.

Total motor cars registrations recorded 10,054 units in Nov slightly down from 10,349 units in Oct but significantly higher than 2,419 units recorded 12 months ago.

Brand new car registrations recorded 6,682 units in Nov, the second highest number on record slightly higher than 6,225 units recorded in Oct but lower than the all-time record set in Sept of 9,427 units, the figure 12 months ago was 672 units showing a YoY growth of almost 1,000%. Almost 95% of the total are from small cars, i.e. less than 1,000cc, mainly Marutis accounting for 5,578 units (Alto – 5,105, Celerio – 459) followed by Panda Micro with 543 units. Hyundai recorded 176 mainly from Eon – this is a stylish looking car and I expect its segment share to go up in future.

Pre-owned car registrations recorded 3,372 units in Nov a drop from 4,124 units in Oct but higher than 1,747 units recorded 12 months ago. Financing share was at 65% indicative that the relaxation of the LTV rule drove volumes although they are down from the highs set in Sep of 5,117 units.

Premium segment recorded 77 units (30 brand new units and 47 preowned units) down from 101 units in Oct but up from 61 units 12 months ago. Mercedes accounted for 16 brand new units (C-class 9, E-class 4 and S-class 2) and 23 preowned units (C-class 5, E-class 8 and S-class 2) followed by BMW accounting for 7 brand new units (5-series 7) and 19 pre-owned units (5-series 6).

Electric cars recorded 494 units in Nov slightly down from 528 units in Oct but significantly up from 9 units 12 months ago. Nissan Leaf accounted for 470 units followed by 9 units of BMW I3, Mercedes B class 9 and 1 Tesla unit).

SUVs recorded 787 units in Nov slightly down from 797 units recorded in Oct and significantly down from 1,369 units recorded 12 months ago. Mitsubishi is the market leader with 235 units (Outlander – 167 units, Montero – 58) followed by Nissan with 166 units (all of them Xtrail hybrids) and Toyota with 134 units (Prado – 107, Harrier – 24). A notable decline is Honda Vezel, 12 months ago 1,293 units were registered which has now dropped to 83 units. A noteworthy observation is that of the 787 units registered last month 418 units are hybrids of which 399 are preowned. In the non-hybrid category volumes are mainly agent imported diesel Mitsubishi Monteros (permit vehicles) and preowned Toyota Prados. Financing share was 55.1% in line with levels recorded in the last few months.

Hybrid registrations recorded 3,240 units in Nov down from 3,970 units recorded in Oct but higher than 2,864 units recorded 12 months ago. Motor cars accounted for 2,790 units of which Suzuki accounted for 1,174 units (Wagon R – 1,102) followed by Toyota accounting for 979 units (Aqua – 456, Axio – 343, Prado – 167) and Honda with 578 units (Fit – 360). Financing share for motor cars was at 64.8% a level consistent with prior months.

Van registrations recorded 799 units in Nov down from 1,113 units in Oct but significantly up from 186 unit 12 months ago. Preowned vans account for 689 units, Mini vans account for 338 units (Suzuki – 239) with the balance 461 units being normal vans (Toyota 290). Hybrid vans are a very small component accounting for 32 units. Financing share was 76.7% similar to previous months.

3-wheelers hit an all-time record recording 13,593 units in Nov beating the prior record set in Sept of 12,406 units and significantly up from 8,142 units in Oct, the figure was 6,917 units 12 months ago. Bajaj maintained its brand share of 88% followed by TVS with 6.7% and Piaggio with 5.3%. Financing share was a high 90.1%.

2-wheeler registrations recorded 30,981 units in Nov slightly down from 31,425 units in Oct but down from election fuelled volumes 12 months ago of 38,539 units. Hero is the market leader claiming a share of 36.5% followed by Bajaj with 24.4%, Honda with 19.9% and TVS with 10.5%. Bajaj was the market leader for many years accounting for 50% but the lack of a scooter in their line up (Bajaj exited the scooter market in 2009) is hurting them. The scooter segment now accounts for 50% of the market – Hero – 9,243, Honda’s Dio – 4,841 and TVS Wego – 1,160. Financing share was 48.5% in line with levels recorded in previous months.

Pickup truck registrations recorded 460 units in Nov slightly up from 416 units in Oct and significantly up from 261 units 12 months ago. Tata accounted for 57% of the market followed by Mitsubishi with 21.3% and Toyota with 14.6%. Financing share was a high 85.9%.

Mini truck registrations recorded 1,766 units in Nov significantly up from 1,154 units in Oct and 1,022 units 12 months ago. Tata maintained its segment share recording 57.7% followed by Mahindra with 38.3%. Financing share was a high 92.8%.

Lite truck registrations recorded 741 units in Nov significantly up from 586 units in Oct and 250 units 12 months ago. Mahindra is the market leader commanding a share of 63.7% followed by Chinese brand DFSK with 17.3% share. Financing share was a high 92.3%.

Medium truck registrations recorded 182 units in Nov slightly lower than 178 units recorded in Oct and 173 units recorded 12 months ago. The market leader is Isuzu with a segment share of 40.7% followed by Mitisubishi with 16.5%. Financing share was 73.1% in line with previous months.

Heavy truck registrations recorded 118 units in Nov slightly down from 131 units recorded in Oct and 127 units recorded 12 months ago. Tata is the market leader claiming a share of 46.9% followed by Ashok Leyland with a share of 40.7%. A noteworthy observation is that tipper units have fallen to a trickle this year with the slowdown in public infrastructure projects. Financing share was a high 94.1%.

Bus registrations recorded 243 units in Nov up from 200 units in Oct but significantly down from election fuelled registations of 506 units recorded 12 months ago. Financing share was 95.1%.