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Showing posts with label Auto Sector. Show all posts
Showing posts with label Auto Sector. Show all posts

Tuesday, April 07, 2009

Q4FY2009 Auto earnings preview


The sales volume for the automobile companies picked up well in Q4FY2009, showing some respite after the sluggish third quarter. During the fourth quarter, the automobile companies beat street expectation in terms of volume gains, particularly in the passenger car and two-wheeler segments. Traditionally, the fourth quarter is the best as sales pick up in this period driven by the year-end demand. The fourth quarter of FY2009 was no different, as automakers reported a strong sequential growth despite the slowdown and macroeconomic woes. The sales were mainly driven by the positive impact of the implementation of the Sixth Pay Commission’s recommendations (the automobile sector is considered the biggest beneficiary of the hike in the salary of government employees); the attractive discounts being offered by the automakers; and the continued strong rural demand despite deceleration in agricultural growth in the previous quarter. Moreover, major public sector banks also contributed to the growth by easing finance availability and lending at lower rates. The announcement of various stimulus packages by the government also provided some remedy for the automobile sector especially the commercial vehicle (CV) segment that has been hit hard by the slowing demand.

Sunday, January 25, 2009

Toyota upstages GM as world's no.1 automaker


Toyota snatched the 'world no. 1 automaker' crown away from General Motors (GM) with the latter's 2008 sales volume falling behind that of the Japanese major. This is the first time since early 1930s that GM has had to relinquish its Numero no position in the global automotive industry. GM sales fell by around 11% in 2008 to 8.35 million vehicles, about 620,000 fewer than Toyota’s 8.97 million vehicles. GM had been the undisputed champion among global automakers since it overtook Ford in 1931, two years before Toyota began making cars in Japan. The two companies had traded places from one quarter to the next in recent years. GM was widely expected to slip to the second spot in 2007 but held off the challenge from Toyota by about 3,000 vehicles.