‘Demonetisation affected automobile sales in north and west’
Chennai, Feb 27 (IANS) The withdrawal of old 500 and 1,000 rupee notes affected automobile sales in north and west India but the sales in southern region were not, said a Kotak Institutional Equities report.
In a report released on Monday, Kotak Institutional Equities said that as per its analysis of third-quarter automobile sales of the current fiscal, southern India was not impacted by demonetisation while north and west India were the most impacted.
According to the report, passenger vehicle demand was less impacted than that of two-wheelers and commercial vehicles. Within the two-wheeler segment, scooterisation trend slowed down due to demonetisation.
Renault India gained market share across states in the passenger car segment while Honda and TVS Motors gained market share from Hero Motocorp in the two-wheeler space.
The report said Renault India’s market share gains were at the expense of Honda Car India while Maruti Suzuki maintained its market share but gained in high-income states such as Maharashtra, Delhi and Karnataka.
“Honda Car has lost market share across states as its new compact SUV launch BRV did not do well,” the report said.
According to Kotal Institutional Equities, passenger vehicle demand in south India grew by 17 per cent year-on-year during the nine-month period of the current fiscal but in north India the demand was flat.
The report said demand for commercial vehicles grew in north India during the third quarter of the current fiscal while it declined sharply in south India.
“Tata Motors lost market share in commercial vehicle segment while Eicher Motors increased its market share. Eicher Motors gained significant market share in Uttar Pradesh and Haryana in MHCVs from Tata Motors and in Tamil Nadu from Ashok Leyland. Tata Motors lost market share across most states barring Maharashtra and Tamil Nadu,” the report said.