In recently released figures from the Society of Indian Automobile Manufacturers, or Siam, there is both good and bad news. The bad news is clearly visible in Table 1: the pick-up in sales of two-wheelers, which was seen as a sign of recovering demand at the bottom of the pyramid, has fallen sharply. Passenger vehicles, too, have seen a decline. Nor have exports stepped in to make up the difference, as could have been expected with a depreciating currency; Table 2 shows declining numbers there, too.
Interestingly, when looking at market shares, three-wheelers have become a major component of automotive exports, as Table 3 shows. But their overall market share, shown in Table 4, is small. In that, two-wheelers continue to dominate, with a steady three-fourths share over the past few years.
The markets, however, continue to be optimistic about Indian auto makers. As Table 5 shows, there has been a steady increase in the index tracking auto-makers' stock prices. One company that has seen a big increase this year (to date) is Tata Motors, according to Table 6. Hero MotoCorp, in spite of flat sales - as seen in Table 7 - has also been rewarded by the markets. Meanwhile, Mahindra & Mahindra, in spite of a 15.7 per cent increase in sales and a 30 per cent increase in profits last financial year - as shown in Table 8 - has seen a dip in its share price in the calendar year to date. (Click here for table)
