September 2014
Dashboard
The Monthly Auto Update
Data Track:
August 2014 volume update of auto majors
Sector overview and outlook ....................................................... 2
Hero MotoCorp ............................................................................. 3
Bajaj Auto ...................................................................................... 4
HMSI .............................................................................................. 6
TVS Motor ..................................................................................... 7
Maruti Suzuki ................................................................................. 9
Mahindra & Mahindra ................................................................. 11
Tata Motors ................................................................................. 13
Ashok Leyland .............................................................................. 15
Eicher Motors .............................................................................. 16
Speedometer
August 2014 relative performance
Sector Gauge:
July 2014 update
Two-wheelers .............................................................................. 17
Three-wheelers ........................................................................... 19
Cars and UVs ................................................................................ 21
Commercial vehicles..................................................................... 23
12-month relative performance
News and developments
Tata Motors launches its new compact sedan Zest......................... 26
TVS Motor launches Scooty Zest……………………………………………….....26
Aggregate Volumes For August 2014*
Segment
Aug-14
Aug-13
YoY (%)
Jul-14
2-Wheelers
1,448,783
1,195,980
21.1
1,400,556
Motorcycl e
1,096,587
956,521
14.6
1,059,530
Scooters
285,106
188,781
51.0
284,284
3-Wheel ers
67,791
45,817
48.0
56,603
Ca rs
113,964
93,276
22.2
102,890
UVs
37,257
38,903
-4.2
37,724
Commercial Vehicles
41,538
47,849
-13.2
41,998
LCV
21,940
30,406
-27.8
21,614
M&HCV
19,598
17,443
12.4
20,384
Tra ctors (M&M)
15,006
14,158
6.0
17,407
Total Volumes
1,724,339
1,435,983
20.1
1,657,178
* Aggrega te of BJAUT, HMCL, TVSL, HMSI, MSIL, MM, TTMT, AL & EIM
MoM (%)
3.4
3.5
0.3
19.8
10.8
-1.2
-1.1
1.5
-3.9
-13.8
4.1
FY15YTD
6,983,135
5,402,178
1,269,354
283,710
521,050
194,363
187,272
105,107
82,165
106,968
8,276,498
FY14YTD
Chg (%)
6,001,335
16.4
4,844,527
11.5
872,639
45.5
240,597
17.9
466,736
11.6
203,267
-4.4
238,081
-21.3
155,460
-32.4
82,621
-0.6
107,204
-0.2
7,257,220
14.0
Source: Compa ny, MOSL
Comparative Valuation
CMP * Rating
TP
P/E (x)
Auto OEM's
(INR)
(INR)
FY15E
FY16E
Ba ja j Auto
2,258
Buy 2,333
18.2
15.5
Hero MotoCorp
2,802
Buy 2,796
18.6
14.9
TVS Motor
201
Buy
206
22.9
14.7
M&M
1,396
Buy 1,377
18.3
14.2
Ma ruti Suzuki
2,913
Buy 2,907
21.4
16.8
Ta ta Motors
516
Buy
612
8.0
6.2
As hok Leyl a nd
38
Buy
45
82.5
14.1
Ei cher Motors #
10,224
Buy 11,401
41.7
26.7
* Pri ce a s on 2nd September 2014. # Nos . a re on CY ba s i s
EV/EBITDA (x)
FY15E
FY16E
12.1
9.8
12.4
10.3
13.6
9.1
15.7
12.9
10.7
8.6
3.7
2.8
11.7
6.2
25.3
16.3
RoE (%)
RoCE (%)
FY15E
FY16E
FY15E
FY16E
34.3
34.1
47.8
47.4
45.4
46.4
62.8
65.3
26.5
32.6
29.8
38.0
39.8
45.4
19.7
20.4
22.1
18.6
0.0
0.0
27.2
23.8
22.6
25.0
28.5
27.2
5.8
13.6
-10.7
2.6
37.8
43.5
Source: Compa ny, MOSL
Jinesh Gandhi
(Jinesh@MotilalOswal.com); +91 22 3982 5416
Chirag Jain
(Chirag.Jain@MotilalOswal.com); + 91 22 3982 5418
Investors are advised to refer through disclosures made at the end of the Research Report.

Dashboard
Data Track
Sector overview and outlook
Strong growth seen across segments except LCVs, tractors
Sharp growth in PVs and 2Ws, MHCVs also grew in double digit on low base
With improved consumer sentiments, post general elections, passenger vehicle
demand has improved considerably. Lead indicators of CV industry such as freight
rates, fleet operators’ utilization are turning positive over the last few months.
Recovery in two-wheeler industry continues with double digit growth led by
scooters. While domestic tractors (M&M) registered 1% growth, below average
monsoon poses a risk to FY15 growth forecast of 5%.
Product lifecycle key factor to off-set competitive forces
Competitive intensity is expected to remain high across segments, especially in PVs
and CVs, with several launches from challengers and incumbents. While volume
recovery would be witnessed across segments, benefit of the same would differ
from player to player depending on their product lifecycle and competitive intensity.
Product lifecycle of incumbents like HMCL (2-3 new product launches) and MSIL (3
new product launches) is favorable, whereas MM doesn't have any major launch
lined-up for FY15. In CVs, we expect continued roll-out of new trucks from Eicher
and Daimler, along with ramp-up in their distribution network, keeping incumbents
on their toes.
Improvement in economic activity post general election proving to be key
catalyst for demand recovery
Revival in economic activity along with improvement in business and customer
sentiments leading to demand recovery. The pace of project clearances and increase
in investment activity would be key to monitor demand moving forward.
Valuation and view
Demand environment and changing competitive landscape in the auto sector would
be the key determinants of stock performance. Prefer
Maruti Suzuki
and
Tata
Motors
in large caps and
TVS Motor
and
Ashok Leyland
in mid-caps.
Key Financial Indicators
EPS Growth (%) *
Volume Chg (%) ^
EBITDA Margins (%)
EPS (INR) *
Auto OEM's
FY15E
FY16E
FY15E
FY16E
FY15E
FY16E
FY15E
FY16E
Ba ja j Auto
9.1
13.6
19.7
20.5
124.2
145.8
10.9
17.4
Hero MotoCorp
10.1
13.2
12.6
13.5
140.3
174.7
32.8
24.6
TVS Motor
22.9
19.3
6.8
7.9
8.8
13.7
55.8
22.6
M&M
3.4
14.7
13.7
13.5
77.1
99.4
19.3
6.1
Ma ruti Suzuki
16.3
17.1
13.1
13.7
129.9
166.1
38.2
28.5
Ta ta Motors *
-2.9
21.5
16.1
16.5
64.2
83.8
40.2
30.6
As hok Leyl a nd
8.7
30.6
7.5
10.0
0.4
2.6
NA
NA
Ei cher Motors #
-
-
12.5
14.6
234.0
364.6
60.4
55.8
Auto Ancillaries
Revenue Gr (%)
Bha ra t Forge
11.2
19.3
18.1
19.2
26.1
36.5
38.2
40.0
Exi de Indus tri es
16.8
15.5
15.2
16.4
7.6
9.7
31.8
28.9
Ama ra Ra ja Ba tteri es
22.5
21.3
17.3
17.9
24.5
31.1
27.0
20.0
^ Vol ume growth for s ta nda l one; * Cons ol i da ted wherever a ppl i ca bl e, ** Roya l ty a djus ted ma rgi ns , # Nos . a re on CY ba s i s .
September 2014
2

Dashboard
Data Track
Hero MotoCorp
Above est with robust 21% growth; well poised for industry recovery
Snapshot of volumes for August 2014
Aug-14
Total volume
558,609
Aug-13
YoY
(%)
Jul-14
529,862
MoM
FY15-YTD
(%)
5.4
FY14-YTD
Chg
(%)
FY15
estimate
YoY
(%)
10.1
Resi- Residual FY15 YTD
dual Gr. Monthly Monthly
(%) Run rate Run rate
9.0 582,308
560,720
459,996 21.4
2,803,600 1,385,562 11.8 6,879,755
Source: Compa ny, MOSL
Highlights
Hero Moto’s Aug-14 sales stood at 558,609 units (+21.4% YoY, +5.4% MoM),
ahead of our estimate of 515,000 units.
Our estimates model for 10.1% volume growth in FY15, implying residual growth
of ~9% or ~582,308 units.
Hero Moto recently commenced production at its 4th manufacturing plant at
Neemrana, Rajasthan. The plant has an installed capacity of 750K units, taking
the total annual installed capacity to 7.65m units of 2Ws.
With impending improvement in consumer sentiments, favorable product
lifecycle and timely addition of capacity, we see upside risk to our volume
estimates.
Hero Moto is targeting 300-400bp margin improvement to 18% by FY18.
Hero Moto trades at 20x/16x FY15E/FY16E EPS of INR140.3/INR174.7
respectively. Maintain
Buy.
Hero MotoCorp: two-wheelers
FY12
690,000
625,000
560,000
495,000
430,000
365,000
300,000
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
FY13
FY14
FY15
Source: Company, MOSL
Bl oomberg
HMCL IN
Equi ty Sha res (m)
200
CMP (INR)
2,802
52-Wk Ra nge (INR) 2,820/1,879
1,6,12 Rel . Perf. (%)
2/15/-5
M.Ca p. (USD b)
9.2
Hero MotoCorp: Financial & Valuation Summary
Year
End
3/13A
3/14A
3/15E
3/16E
Net Sales
(INR m)
235,827
251,249
283,410
326,394
PAT
(INR m)
21,182
21,091
28,008
34,897
EPS
(INR)
106.1
105.6
140.3
174.7
EPS
Gr. (%)
-10.9
-0.4
32.8
24.6
P/E
(X)
26.4
26.5
20.0
16.0
P/CE
(X)
23.3
23.7
16.5
14.4
P/BV
(X)
11.2
10.0
8.3
6.7
EV/
EBITDA
16.9
15.3
13.4
11.2
RoE
(%)
45.6
39.8
45.4
46.4
RoCE
(%)
43.6
52.0
62.8
65.3
August 2014
3

Dashboard
Data Track
Bajaj Auto
Domestic volumes remain weak; highest ever 3W sales
Snapshot of volumes for August 2014
Aug-14
Total volume
Motorcycles
Three-Wheelers
Domestic
Exports
336,840
284,302
52,538
161,713
175,127
Aug-13
YoY
(%)
Jul-14
319,292
267,841
51,451
149,537
169,755
MoM
FY15-YTD
(%)
5.5
6.1
2.1
8.1
3.2
FY14-YTD
Chg
(%)
FY15
estimate
Resi- Residual FY15 YTD
YoY
dual Gr. Monthly Monthly
(%)
(%) Run rate Run rate
9.1
8.9
10.5
7.3
11.7
12.2
13.0
6.3
20.0
1.5
368,292
328,733
39,559
228,015
140,278
328,912
285,400
43,512
171,543
157,370
312,188 7.9
278,583 2.1
33,605 56.3
168,028 -3.8
144,160 21.5
1,644,562 1,572,790 4.6 4,222,607
1,427,001 1,385,562 3.0 3,728,130
217,561 1,385,562 16.2
494,477
857,713
187,228 -10.3 2,453,815
786,849
956,044 27.6 1,768,792
Source: Compa ny, MOSL
Highlights
Aug-14 total volumes grew 8% YoY to 336,840 units (v/s est 366,375 units), led
by 21.5% YoY (+3% MoM) growth in exports. Domestic de-grew 4% YoY (+8%
MoM).
Motorcycle volumes grew ~2% YoY (+6% MoM) to 284,302 units (vs est 315,872
units). Discovery volumes grew 16% YoY to 93,000 units (vs ~59k in Jul-14),
benefitting from recent launch of Discover 150 in Aug-14.
3Ws volumes were highest ever at 52,538 units (v/s est 50,503 units) grew 56%
YoY (+2% MoM).
Domestic volumes de-grew ~4% YoY to ~161,713 units (v/s est 173,003 units),
where as exports grew 21.5% YoY (+.% MoM) to ~175,127 units (vs est 193,372
units) as against mgmt’s expectation of 185-190k.
The management for first time has formally guided for monthly volumes, with
Sep-14 volumes guidance of ~400,000 units (vs our est of ~420k units), led by
ramp-up in recent launches and festive season led uptick in volumes.
We estimate ~9% volume growth in FY15, implying ~12% residual growth or
~368,292 units/month run-rate.
The stock trades at 18.2/15.5x/13.6x FY15/FY16/FY17 EPS of ~INR124/146/166.
Maintain
Buy.
Bl oomberg
BJAUT IN
Equi ty Sha res (m)
289.4
CMP (INR)
2,258
52-Wk Ra nge (INR) 2,364/1,796
1,6,12 Rel .Perf.(%)
4/-9/-21
M.Ca p. (USD b)
10.8
Bajaj Auto: Financial & Valuation Summary
Year Net Sales
End
(INR m)
3/13A 199,973
3/14A 201,495
3/15E 228,640
3/16E 258,515
PAT
(INR m)
30,436
32,420
35,938
42,199
EPS
(INR)
105.2
112.0
124.2
145.8
EPS
Gr. (%)
-2.0
6.5
10.9
17.4
P/E
(X)
21.5
20.2
18.2
15.5
P/CE
(X)
20.4
19.1
16.8
14.4
P/BV
(X)
8.3
6.8
5.8
4.9
EV/
EBITDA
16.1
13.7
12.1
9.8
RoE
(%)
43.7
37.0
34.3
34.1
RoCE
(%)
59.8
51.8
47.8
47.4
August 2014
4

Dashboard
Two-wheeler volumes (units)
440,000
375,000
FY12
FY13
FY14
FY15
Volumes improve
sequentially driven by
exports and 3Ws
310,000
245,000
180,000
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Three-wheeler volumes (units)
FY12
FY13
FY14
FY15
59,000
Highest ever 3W volumes
52,000
45,000
38,000
31,000
24,000
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Export volumes (units)
200,000
FY12
FY13
FY14
FY15
160,000
Exports grew by 22% YoY
120,000
80,000
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Market mix
Exports
Domestic
100%
75%
Share of domestic sales
have declined in
recent months
50%
25%
0%
August 2014
5

Dashboard
Data Track
HMSI
Robust growth in scooters, motorcycle growth has moderated
Highlights
Scooters have been the key
growth driver of volumes
HMSI Aug-14 sales increased by 25.7% YoY to 388,210.
Growth was largely driven by scooters which grew 43% to 217,866 units, while
growth in motorcycles have moderated to 8.8% to 170,334 units
HMSI has recently launced Activa 125cc to consolidate its market position in the
scooter segment.
HMSI: Monthly volume trend
FY12
FY13
FY14
FY15
400,000
325,000
250,000
175,000
100,000
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
August 2014
6

Dashboard
Data Track
TVS Motor
Strong growth across portfolio; Scooters grew 84%
Snapshot of volumes for August 2014
Aug-14
Total volume
Motorcycles
Scooters
Mopeds
Three-Wheelers
Aug-13
YoY
(%)
chg
46.3
35.9
84.3
32.4
39.0
Jul-14
203,092
76,767
60,619
56,742
8,964
MoM
FY15-YTD
(%) chg
12.0
8.6
10.9
18.2
9.5
1,033,727
393,982
284,376
311,603
43,766
FY14-
YTD
803,702
312,669
175,501
284,169
31,363
YTD
(%)
chg
28.6
26.0
62.0
9.7
39.5
FY15
estimate
2,556,953
983,730
698,936
767,768
106,519
Resi- Residual FY15 YTD
YoY
dual Gr. Monthly Monthly
(%) chg
(%)
Run rate Run rate
22.9
24.0
46.9
5.1
30.5
19.2
22.7
38.1
2.3
24.8
217,604
84,250
59,223
65,166
8,965
206,745
78,796
56,875
62,321
8,753
227,482 155,532
83,332 61,313
67,240 36,478
67,090 50,678
9,820
7,063
Source: Compa ny, MOSL
Highlights
TVS Motor aims 18%
market share and double
digit margins over next 3
years
TVS Motor’s Aug-14 sales were significantly ahead of our estimates. Sales grew
46% YoY to 227,482 units (est 207k units), driven by strong growth across
portfolio.
Scooters volumes grew 84% YoY to 67,240 units (est 63,000 units) driven by
strong performance of Jupiter together with benefit of recently launched Scooty
Zest (110cc variant)
Motorcycle volumes have grown by 36% YoY to 83,332 units (est 80,000 units).
Recently launched Star City Plus have received encouraging response.
Mopeds have registered strongest growth since FY11 with 67,090 units (est
55,000 units)
Exports continue to grow strongly with 28% YoY growth to 35,074 units (est
37,486 units).
3Ws have grown by 39% YoY driven by exports.
We have factored in 22.9% growth for FY15, implying a residual growth of 19.2%
(residual run-rate of 217,604 units).
Expect upgrades to our volume estimates. Maintain
Buy.
Stock info
Bl oomberg
Equi ty Sha res (m)
52-Week Ra nge (IN
1,6,12 Rel . Perf. (%)
M.Ca p. (INR b)
M.Ca p. (USD b)
TVSL IN
475.1
202/29
26/104/505
95.6
1.6
TVS Motor Company Ltd: Valuation summary
Year
Net Sales
PAT
EPS
EPS
End
(INR m)
(INR m)
(INR)
Gr. (%)
03/13A
70,650
1,810
3.8
-27.3
03/14A
79,619
2,607
5.5
44.0
03/15E
104,923
4,179
8.8
60.3
03/16E
130,580
6,509
13.7
55.8
P/E
(X)
52.8
36.7
22.9
14.7
P/BV
(X)
7.8
6.8
5.5
4.2
RoE
(%)
15.1
19.7
26.5
32.6
RoCE
(%)
15.7
20.3
29.8
38.0
EV/
EBITDA
24.9
20.8
13.6
9.1
August 2014
7

Dashboard
Motorcycle volumes (units)
98,000
FY12
FY13
FY14
FY15
New Star City Plus and
exports driving motorcycle
volumes
86,000
74,000
62,000
50,000
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Scooters and mopeds (units)
150,000
132,000
FY12
FY13
FY14
FY15
Strong growth in scooters
continues; Mopeds have
recovered with strong
growth as well
114,000
96,000
78,000
60,000
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Sales mix
Scooters & Mopeds
Motorcycles
100%
75%
50%
25%
0%
August 2014
8

Dashboard
Data Track
Maruti Suzuki
Aug-14 volumes: In-line, strong growth across portfolio
Snapshot of volumes for August 2014
Aug-14
Total volume
Domestic
C (Vans)
A2 (Compacts)
A3 (Sedan)
UV (Ertiga)
Export
110,776
98,304
9,990
64,845
17,978
5,491
12,472
Aug-13
87,323
76,018
7,956
47,906
14,071
4,563
11,305
YoY
(%)
26.9
29.3
25.6
35.4
27.8
20.3
10.3
Jul-14
101,380
90,093
11,680
53,915
18,867
5,631
11,287
MoM
FY15-YTD
(%)
9.3
9.1
-14.5
20.3
-4.7
-2.5
10.5
512,050
459,040
50,501
293,835
88,315
26,389
53,010
FY14-YTD
437,056
396,509
38,200
246,417
80,319
23,747
40,547
Chg
(%)
FY15
estimate
YoY
(%)
16.3
17.5
Resi- Residual FY15 YTD
dual Gr. Monthly Monthly
(%) Run rate Run rate
15.8 118,789
18.6 111,304
102,410
91,808
17.2 1,343,574
15.8 1,238,171
32.2
19.2
10.0
11.1
30.7
105,402
4.0
-13.8
7,485
10,602
Source: Compa ny, MOSL
Highlights
Maruti Suzuki (MSIL) reported robust 27% YoY (+9.3% MoM) growth in Aug-14
sales to 110,776 units (est 108,000 units). We have factored in 16.3% YoY
volume growth for FY15, implying a residual run-rate of 15.8% YoY (residual run-
rate of 118,789/m units).
Growth was driven by entire portfolio with compacts (Swift, Celerio, Ritz)
growing by 35% YoY as first time buyers return and ramp-up in Celerio AMT
variant production.
Current channel inventory remains at comfortable levels of 4-5 weeks. Expect
inventory build-up over next two months considering festive season.
Exports have grown by 10% YoY to 12,472 units. Expect upgrade to our FY15
export growth assumption of 4% to 105,000 units.
MSIL is well poised to benefit from industry demand recovery driven by a)
income growth and consumer sentiments improvement, b) high exposure to
entry-level car buyers as first time buyers return, c) favorable product lifecycle -
premium sedan (Ciaz) expected in Sept-14 and compact SUV in 4QFY15.
MSIL trades at 22.4/17.5x FY15E/16E Consol. EPS of INR129.9/166.1
respectively. Maintain
Buy.
Maruti Suzuki: Financial & Valuation Summary
Bl oomberg
Equi ty Sha res (m)
CMP (INR)
52-Wk Ra nge (INR)
1,6,12 Rel .Perf.(%)
M.Ca p. (USD b)
MSIL IN
302.1
2,913
2,964/1,234
7/53/81
14.5
Year Total Inc. PAT Con. EPS EPS Con. P/E
End (INR m) (INR m) (INR) Gr. (%) (x)
3/13A 435,879 23,921 81.7
40.5
35.6
3/14A 437,005 27,831 94.4
15.5
30.8
3/15E 521,438 38,449 129.9
37.5
22.4
3/16E 618,951 49,418 166.1
27.9
17.5
SPIL merger w.e.f 1/Apr/2012
P/CE
(x)
20.3
17.8
13.8
11.3
P/BV
(X)
4.7
4.2
3.6
3.1
EV/
EBITDA
19.3
15.5
11.4
8.8
RoE
(%)
12.9
13.3
15.8
17.3
RoCE
(%)
15.5
16.5
19.7
22.0
August 2014
9

Dashboard
Monthly volumes (units)
140,000
115,000
90,000
65,000
40,000
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
FY12
FY13
FY14
FY15
Export volumes (units)
20,000
15,000
FY12
FY13
FY14
FY15
MSIL has guided export
volumes of 120,000 units
for FY15
10,000
5,000
0
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Market mix
Exports
Domestic Sales
100%
75%
50%
25%
0%
August 2014
10

Dashboard
Data Track
Mahindra & Mahindra
Auto remains weak, exports drive tractor growth
Snapshot of volumes for August 2014
Aug-14
Total volume
UV (incl. pick-ups
LCV
Verito (Logan)
Three-Wheelers
Tractors
50,181
28,945
597
200
5,433
15,006
Aug-13
52,055
31,322
471
955
5,149
14,158
YoY
(%)
-3.6
-7.6
26.8
-79.1
5.5
6.0
Jul-14
52,974
29,508
725
192
5,142
17,407
MoM
FY15-YTD
(%)
-5.3
-1.9
-17.7
4.2
5.7
-13.8
290,324
156,255
3,913
805
22,383
106,968
FY14-YTD
305,181
166,934
3,800
5,237
22,006
107,204
Chg
(%)
-4.9
-6.4
3.0
-84.6
1.7
-0.2
FY15
estimate
Resi- Residual FY15 YTD
YoY
dual Gr. Monthly Monthly
(%)
(%) Run rate Run rate
8.6
7.8
6.8
96.4
7.6
8.5
72,933
40,250
665
816
6,338
24,864
58,065
31,251
783
161
4,477
21,394
800,852
3.3
438,004
2.3
8,569
5.0
6,515 -20.0
66,748
5.5
281,016
5.0
Source: Compa ny, MOSL
Highlights
"In spite of our overall
sales remaining flat in
August, we continue to
be optimistic due to the
industry’s enhanced
business confidence
which is reflected by the
manufacturing sector
showing signs of revival.
The automotive industry,
including us, is hopeful of
a better demand leading
up to the ensuing festival
season," said M&M Chief
Executive (Automotive
Division) Pravin Shah, as
quoted in media
M&M Aug-14 sales declined by 3.6% YoY to 50,181 units (est 51,026 units)
driven by 7% decline in Autos, while tractor volumes grew 6%.
UVs (incl. pick-ups) declined by 7.6% YoY to 28,945 units (30,500 units). We
estimate UV volumes to grow 2.3% for FY15, implying a residual growth of 7.8%
(residual run-rate of 40,250 units). 3Ws grew 5.5% YoY to 5,433 units (est 5,664
units). We have factored in 5.5% growth for FY15.
On release of monthly sales performance, M&M Chief Executive (Automotive
Division) Pravin Shah said: "In
spite of our overall sales remaining flat in August,
we continue to be optimistic due to the industry’s enhanced business confidence
which is reflected by the manufacturing sector showing signs of revival. We do
hope that the government continues to drive the agenda of reforms together
with execution which would spur investments. The automotive industry,
including us, is hopeful of a better demand leading up to the ensuing festival
season".
Domestic tractor volumes grew 1%. However, doubling of exports led to overall
tractor volume growth of 6%. Deficient monsoon has impacted the timely
sowing and consequent farmers sentiments. We estimate 5% growth in tractor
volumes for FY15, implying a residual growth of 8.5%.
Rajesh Jejurikar, Chief Executive, M&M’s Farm Equipment and Two Wheeler
Division said "We
have achieved a domestic growth of 1% during August 2014.
Deficient rainfall has disturbed the timely sowing of crops and impacted farmer
sentiments. However, we hope that the approaching festive season will give a
boost to the industry growth in the months to come.”
Mahindra and Mahindra: Financial & Valuation Summary
Bl oomberg
MM IN
Equi ty Sha res (m)
587.2
CMP (INR)
1,396
52-Wk Ra nge (INR) 1,420/749
1,6,12 Rel .Perf.(%) 13/20/39
M.Ca p. (USD b)
13.8
Year Net Sales S/A PAT * S/A EPS * Cons. Con. EPS
End (INR m) (INR m)
(INR) EPS (INR) Gr (%)
3/13A 404,412 36,344
60.7
60.9
18.9
3/14E 405,085 39,051
65.2
72.7
19.3
3/15E 440,719 38,043
63.6
77.1
6.1
3/16E 519,807 44,395
74.2
99.4
29.0
* S/A i ncl udi ng MVML
P/E Cons.
(x) P/E (x)
23.0 22.9
21.4 19.2
22.0 18.1
18.8 14.0
RoE
(%)
22.4
22.1
18.6
18.8
RoCE
EV/
EV/
(%) Sales (x) EBITDA
23.2
1.5
12.3
20.3
2.0
17.3
19.7
1.9
15.6
20.4
1.6
12.8
August 2014
11

Dashboard
Utility vehicle volumes (units)
48,000
39,000
FY12
FY13
FY14
FY15
UV volumes declines on a
sequential basis
30,000
21,000
12,000
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Tractor volume (units)
FY12
FY13
FY14
FY15
44,000
36,000
28,000
20,000
12,000
4,000
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Product mix
Cars
LCVs, 3-wheelers
Tractors
UVs
100%
75%
Tractors and UVs
dominate the
segment mix
50%
25%
0%
August 2014
12

Dashboard
Data Track
Tata Motors
Below estimates; HCVs recovering, LCVs & PVs remain weak
Snapshot of volumes for August 2014
Aug-14
Total volume
40,883
HCV's
10,517
LCV's
19,028
Cars
8,466
UV's
2,872
of which exports 4,480
Aug-13
49,611
9,297
27,735
9,561
3,018
4,894
YoY
(%)
-17.6
13.1
-31.4
-11.5
-4.8
-8.5
Jul-14
39,619
11,307
18,778
6,949
2,585
4,316
MoM
FY15-YTD
(%)
3.2
-7.0
1.3
21.8
11.1
3.8
190,476
52,399
91,736
34,571
11,770
12,126
FY14-YTD
254,251
53,319
140,156
48,190
12,586
20,606
Chg
(%)
-25.1
-1.7
-34.5
-28.3
-6.5
-41.2
FY15
estimate
Resi- Residual FY15 YTD
YoY
dual Gr. Monthly Monthly
(%)
(%) Run rate Run rate
15.2
19.0
7.7
26.3
24.4
51,270
11,802
24,246
11,746
3,476
38,095
10,480
18,347
6,914
2,354
549,364 -2.9
135,013 10.0
261,461 -12.2
116,791
3.1
36,099 12.3
Source: Compa ny, MOSL
Highlights
Discounts are
moderating in MHCVs
over last few months
Tata Motors Aug-14 sales volumes have declined by 17.6% YoY to 40,883 units
(v/s est 42,467 units).
HCV sales grew 13.1% YoY 10,517 units (est 10,000 units). Our industry
interaction indicates that freight rates have started inching upwards driven by
gradual increase in fleet operators utilization. Over the next few months, we
expect recovery in MHCV volumes to gather pace on expectation of pick-up in
economic activity and pent up demand due to sharply lower volumes of last two
years. We estimate ~10% HCV growth in FY15, implying 19% residual growth.
LCV sales continue to decline, with 31% YoY to 19,028 (est 19,400 units). Our
industry interaction indicates that credit availability has been difficult due to rise
in defaults. We estimate decline of 12.2% in LCVs in FY15, implying 7.7% residual
growth.
Car sales stood at 8,466 units (est 9,752 units), a de-growth of 12% YoY.
Recently launched Zest (compact sedan) has received encouraging response, as
per management. We estimate ~3% growth in passenger cars in FY15, implying
26% residual growth or ~9,752 units.
UV sales were at 2,872 units (est 3,259 units), a de-growth of 5% YoY. We
estimate ~12.3% UV growth in FY15, implying 25% residual growth
The stock trades at 8x/6.2x FY15E/16E consol. EPS respectively. Maintain
Buy.
Bl oomberg
Actua l Eq. Sh (m)
CMP (INR)
52-Wk Ra nge (INR)
1,6,12 Rel . Perf. (%)
M.Ca p. (USD b)
TTMT IN
3,218.9
516
531/292
11/-1/29
27.4
Tata Motors: Financial & Valuation Summary
Year
Sales
Adj. PAT Adj. EPS
Norm.
P/E Norm.
End * (INR m) (INR m)
(INR)
EPS (INR) ^ Ratio P/E (x)
3/13A 1,888,176 103,286
32.1
12.4
16.1
41.5
3/14A 2,328,337 147,276
45.8
19.4
11.3
26.6
3/15E 2,733,327 206,533
64.2
32.8
8.0
15.7
3/16E 3,288,606 269,745
83.8
43.4
6.2
11.9
* Cons ol i da ted;
^ Norma l i zed for ca pi ta l i zed expens es
RoE
(%)
29.4
28.5
27.2
27.1
RoCE
EV/
EV/
(%) Sales (x) EBITDA (x)
23.4
1.0
7.2
25.7
0.8
4.8
26.5
0.6
3.7
28.2
0.5
2.7
August 2014
13

Dashboard
M&HCV volumes (units)
FY12
FY13
FY14
FY15
28,000
22,000
Volumes improves YoY on
low base
16,000
10,000
4,000
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
LCV volumes (units)
FY12
FY13
FY14
FY15
48,000
LCV volumes continue to
remain weak on financing
constraints
40,000
32,000
24,000
16,000
8,000
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Car volumes (units)
FY12
FY13
FY14
FY15
35,000
29,000
23,000
17,000
11,000
5,000
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Product mix in the CV segment
100%
75%
50%
25%
0%
LCVs
M&HCVs
August 2014
14

Dashboard
Data Track
Ashok Leyland
MHCVs grew 18% to 5,830 units, growth in LCVs turn positive with 14% YoY
Snapshot of volumes for August 2014
Aug-14
Total volume
CV (ex LCV)
LCV (Nissan JV)
8,331
5,830
2,501
Aug-13
7,139
4,939
2,200
YoY
(%)
16.7
18.0
13.7
Jul-14
7,847
5,736
2,111
MoM
FY15-YTD
(%)
6.2
1.6
18.5
36,159
26,515
9,644
FY14-YTD
9
12
2
Chg
(%)
-3.8
1.6
-16.2
FY15
estimate
97,128
68,128
29,000
YoY
(%)
8.7
11.7
2.3
Resi- Residual FY15 YTD
dual Gr. Monthly Monthly
(%) Run rate Run rate
17.8
19.2
15.0
8,710
5,945
2,765
7,232
5,303
1,929
Source: Compa ny, MOSL
Highlights
Ashok Leyland reported sales volume growth of 16.7% YoY (+6.2% MoM) in Aug-
14 sales volumes to 8,331 units (est 7,413 units).
MHCV volumes grew 18% YoY to 5,830 units (est 5,433 units). Management has
indicated improved demand outlook for 2H led by acceleration in economic
activity.
Growth in LCVs (Dost & Stile) has turned positive with 14% YoY growth to 2,501
units (est 1,980 units).
The stock trades at 15x FY16E EPS, 8.4x EV/EBITDA and 1.9x P/BV. Maintain
Buy.
Trend in M&HCV voulmes (units)
Source:
Bl oomberg
AL IN
Equi ty Sha res (m)
2,845.9
CMP (INR)
38
52-Week Ra nge
39/12
1,6,12 Rel . Perf. (%) 6/109/162
M.Ca p. (INR b)
110
M.Ca p. (USD b)
1.8
Ashok Leyland: Financial & Valuation Summary
Year Net Sales
PAT
EPS
EPS
P/E
End (INR m) (INR m) (INR) Gr. (%)
(x)
3/13A 124,812
4,337
0.6
-73.3
61.8
3/14A 99,434
294
-1.8
-
-
3/15E 120,799
1,261
0.4
-
-
3/16E 159,442
7,367
2.6
-
15.0
P/BV
(x)
2.3
2.3
2.1
1.9
RoE
(%)
3.9
-10.7
2.6
13.5
RoCE
(%)
6.5
-1.5
5.8
13.6
EV/
EV/
Sales (x) EBITDA (x)
1.1
15.8
1.4
85.7
1.2
15.5
0.8
8.4
August 2014
15

Dashboard
Data Track
Eicher Motors
RE volumes robust but VECV sales decline
Snapshot of volumes for August 2014
Aug-14
Royal Enfield
VECV
26,643
3,402
1,860
612
869
61
Aug-13
16,060
3,234
1,913
YoY (%)
chg
65.9
5.2
-2.8
Jul-14
27,314
6,131
1,617
MoM (%)
YTD (%)
CY14-YTD
chg
chg
-2.5
-44.5
15.0
192,356
27,663
13,155
4,584
6,722
417
81.5
(9.9)
(16.4)
LMD
HD
Bus es
Vol vo
566
671
84
8.1
29.5
-27.4
3,588
857
69
-82.9
1.4
-11.6
6.0
5.4
20.5
Highlights
Royal Enfield is targeting
sales of 280,000 units in
CY14 respectively
Royal Enfield volumes have increased by 66% YoY to 26,643 units (est 27,600
units).
VECV sales though have declined by 5.6% YoY (down 9.4% MoM) to 3,027 units
(est 3,709 units). Domestic sales have declined 6.7% YoY, while exports growth
has moderated to 1.3% (v/s YTD growth of 127%)
LMD segment has registered a growth of 4% (v/s YTD decline of 14%), while HD
segment has registered 10% growth (6% YTD).
Buses have declined by 34% (YTD growth of 1%) to 589 units.
The stock trades at 28x/18.9x CY15E/CY16E EPS of INR364/542.3 respectively.
Maintain
Buy.
Royal Enfield volumes continues to show strong growth
CY12
CY13
CY14
VECV volumes showing recovery signs (YoY)
CY12
CY13
CY14
6,500
5,000
3,500
2,000
30,000
24,000
18,000
12,000
6,000
0
Source: Company, MOSL
Eicher Motors: Financial & Valuation Summary
EPS
EPS
Year Net Sales PAT
End
(INR b) (INR b) (INR) Gr (%)
12/12A
63.9
3.2
120.1
5.0
12/13A
68.1
3.9
145.9
21.5
12/14E
88.8
6.3
234.0
60.4
12/15E 121.6
9.9
364.6
55.8
E: MOSL Es ti ma tes
Source: Company, MOSL
Bloomberg
Equity Shares (m)
52-Week Range (INR)
1,6,12 Rel. Perf. (%)
M.Cap. (INR b)
M.Cap. (USD b)
EIM IN
27.0
10,620/3,100
16/56/177
276.1
4.6
P/E
(x)
85.1
70.1
43.7
28.0
P/BV
(x)
15.7
13.5
11.4
8.5
RoE
(%)
20.0
20.7
28.2
34.6
RoCE
(%)
22.7
21.8
28.3
37.8
EV/EBITDA Div. Yld
(x)
(%)
73.2
0.2
49.0
0.3
27.3
0.3
17.3
0.4
August 2014
16

Dashboard
Sector Gauge
Two-wheelers
Scooters continue to gain share, mopeds showing recovery signs
Two-wheelers: Volume snapshot
Total Domestic 2W
% of Tota l 2W
Total Motorcycle
% of Domes ti c 2W
<125cc
% of Motorcycl e
>125cc
% of Motorcycl e
Scooters & Mopeds
% of Domes ti c 2W
Exports
% of Tota l 2W
Total 2W
Jul-14
1,285,985
85
857,813
67
690,723
81
167,090
19
428,172
33
221,081
15
1,507,066
Jul-13
1,131,821
88
809,141
71
667,585
83
141,556
17
322,680
29
156,131
12
1,287,952
YoY (%)
13.6
6.0
3.5
18.0
32.7
41.6
17.0
Jun-14
MoM (%)
1,260,574
2.0
87
875,181
-2.0
69
720,661
-4.2
82
154,520
8.1
18
385,393
11.1
31
180,521
22.5
13
1,441,095
4.6
FY15-YTD
5,251,740
87
3,627,275
69
2,967,934
82
659,341
18
1,624,465
31
806,663
13
6,058,403
FY14-YTD
Chg (%)
4,622,186
13.6
88
3,333,146
8.8
72
2,812,679
5.5
84
520,467
26.7
16
1,289,040
26.0
28
612,478
31.7
12
5,234,664
15.7
Source: Compa ny, MOSL
Two-wheelers: Domestic volume trend (units)
FY12
FY13
FY14
FY15
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
Domestic market share in 2-wheelers
Hero MotoCorp
Bajaj Auto
HMSI
Yamaha
TVS Motor
100%
75%
50%
25%
0%
August 2014
17

Dashboard
Motorcycles: domestic volume trend
FY12
FY13
FY14
FY15
1,200,000
1,000,000
Volumes decline on
MoM basis
800,000
600,000
400,000
Motorcycles: domestic market share
Hero MotoCorp
Bajaj Auto
HMSI
Yamaha
TVS Motor
100%
75%
50%
25%
0%
Two-wheelers: Product mix
Motorcycle
Scooters & Mopeds
100%
75%
50%
25%
0%
Two-wheelers: export volumes (units)
250,000
225,000
200,000
175,000
150,000
125,000
100,000
FY12
FY13
FY14
FY15
August 2014
18

Dashboard
Sector Gauge
Three-wheelers
Growth driven by both domestic and exports
Three-wheelers: Volume snapshot
Total Domestic 3W
% of Tota l 3W
Passenger
% of Domes ti c eW
Total Goods
% of Domes ti c 3W
<1T
% of Goods Vehi cl e
>1T
% of Goods Vehi cl e
Exports
% of Tota l 3W
Total 3W
Jul-14
51,461
58
43,506
85
7,955
15
7,776
98
179
2
37,198
42
88,659
Jul-13
41,572
63
35,078
84
6,494
16
6,240
96
254
4
24,765
37
66,337
YoY (%)
23.8
24.0
22.5
24.6
-29.5
50.2
33.6
Jun-14
47,348
61
39,428
83
7,920
17
7,689
97
231
3
30,551
39
77,899
MoM (%)
8.7
10.3
0.4
1.1
-22.5
21.8
13.8
FY15-YTD
172,780
57
142,350
82
30,430
18
29,777
98
653
2
131,390
43
304,170
FY14-YTD
Chg (%)
150,241
15.0
56
122,458
16.2
82
27,783
9.5
18
27,040
10.1
97
743
-12.1
3
118,702
10.7
44
268,943
13.1
Source: SIAM/MOSL
Three-wheelers: volume trend (including exports)
FY12
92,000
80,000
68,000
56,000
44,000
32,000
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
FY13
FY14
FY15
Three-wheelers: domestic segment mix
100%
Passenger
Goods
Passenger segment
dominates three-wheelers
with over
80% contribution
75%
50%
25%
0%
August 2014
19

Dashboard
Three wheelers: passenger segment market share
100%
75%
Bajaj Auto
Piaggio
M&M
TVS
Others
Bajaj Auto continues
to dominate
passenger segment…
50%
25%
0%
Three wheelers: goods segment market share
100%
Bajaj Auto
Piaggio
M&M
Others
... Piaggio continues
to lead in the
goods segment
75%
50%
25%
0%
August 2014
20

Dashboard
Sector Gauge
Cars and UVs
Sales improves led by improved consumer sentiments
Passenger vehicles: Volume snapshot
Jul-14
Total Domestic PVs
195,762
% of Tota l PVs
78
Total Cars
137,616
% of Domes ti c PVs
70
A1 & A2
98,576
% of Ca rs
72
A3
36,161
% of Ca rs
26
A4 & a bove
2,879
% of Ca rs
2
UVs
41,529
% of Domes ti c PVs
21
MPVs
16,617
% of Domes ti c PVs
8
Exports
55,498
% of Tota l PVs
22
Total PVs
251,260
Jul-13
186,206
76
130,203
70
97,187
75
29,826
23
3,190
2
37,937
20
18,066
10
57,335
24
243,541
YoY (%)
5.1
5.7
1.4
21.2
-9.7
9.5
-8.0
-3.2
3.2
Jun-14
218,469
81
160,006
73
122,003
76
34,689
22
3,314
2
43,716
20
14,747
7
51,531
19
270,000
MoM (%)
-10.4
-14.0
-19.2
4.2
-13.1
-5.0
12.7
7.7
-6.9
FY15-YTD
614,516
82
443,638
72
330,217
74
105,045
24
8,376
2
128,594
21
42,284
7
136,214
18
750,730
FY14-YTD
Chg (%)
605,842
1.4
82
433,176
2.4
71
317,531
4.0
73
102,274
2.7
24
13,371
-37.4
3
123,657
4.0
20
49,009
-13.7
8
130,680
4.2
18
736,522
1.9
Source: SIAM/MOSL
Cars: domestic volume (units)
240,000
200,000
160,000
120,000
80,000
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
UVs & MPVs: domestic volume (units)
FY12
FY13
FY14
FY15
106,000
76,000
46,000
16,000
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
August 2014
21

Dashboard
Passenger vehicles: export volume (units)
FY12
FY13
FY14
FY15
65,000
56,000
47,000
38,000
29,000
20,000
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Cars: domestic market share
Maruti
TataMotor
Hyundai
GM
Honda
100%
MSIL market share
improves sequentially
75%
50%
25%
0%
UVs: domestic market share
M&M
TataMotor
Toyota
Maruti
GM
100%
75%
50%
25%
0%
Passenger vehicles: segment mix
100%
A1
A2
A3
A4 & above
MPV
UV
A2 dominates the
passenger vehicles segment
75%
50%
25%
0%
August 2014
22

Dashboard
Sector Gauge
Commercial vehicles
M&HCV goods registers growth, LCV remains weak
Commercial vehicles: Volume snapshot
Jul-14
Total Domestic CVs
47,204
% of Total CVs
84
Total M&HCV
17,571
% of Domestic CVs
37
Goods
14,623
% of M&HCVs
83
Pa s s enger
2,948
% of M&HCVs
17
Total LCVs
29,633
% of Domestic CVs
63
Goods
25,328
% of LCVs
54
Pa s s enger
4,305
% of LCVs
9
Exports
9,045
% of Total CVs
16
Total CVs
56,249
Jul-13
55,152
90
18,541
34
14,503
78
4,038
22
36,611
66
32,510
59
4,101
7
6,191
10
61,343
YoY (%)
-14.4
-5.2
0.8
-27.0
-19.1
-22.1
5.0
46.1
-8.3
Jun-14
50,603
89
18,220
36
14,495
80
3,725
20
32,383
64
27,520
54
4,863
10
6,254
11
56,857
MoM (%)
-6.7
-3.6
0.9
-20.9
-8.5
-8.0
-11.5
44.6
-1.1
FY15-YTD
187,434
88
67,602
36
54,768
81
12,834
19
119,832
64
102,089
54
17,743
9
24,944
12
212,378
FY14-YTD
Chg (%)
223,372
-16.1
91
74,443
-9.2
33
57,832
-5.3
78
16,611
-22.7
22
148,929
-19.5
67
130,773
-21.9
59
18,156
-2.3
8
21,719
14.8
9
245,091
-13.3
Source: SIAM/MOSL
M&HCVs: Domestic volume - goods (units)
FY12
FY13
FY14
FY15
40,000
32,000
24,000
16,000
8,000
0
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
M&HCVs: domestic volume - buses (units)
7,500
6,000
4,500
3,000
1,500
0
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
FY12
FY13
FY14
FY15
August 2014
23

Dashboard
M&HCVs: domestic market share, goods (%)
FY12
40,000
32,000
24,000
16,000
8,000
0
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
FY13
FY14
FY15
M&HCVs: domestic market share, buses (%)
7,500
6,000
4,500
3,000
1,500
0
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
FY12
FY13
FY14
FY15
LCVs: domestic volumes (units)
60,000
50,000
40,000
30,000
20,000
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
FY12
FY13
FY14
FY15
LCVs: domestic market share (%)
100%
75%
50%
25%
0%
TataMotor
Piaggio
M&M
Others
August 2014
24

Dashboard
Goods: segment-wise break-up (%)
100%
75%
50%
25%
0%
LCVs
<12T
<16T
<35T
August 2014
25

Dashboard
News and Events
Major developments in the auto sector
Tata Motors launches its new compact sedan
Zest
Tata Motors launched Zest, its compact sedan, with the base petrol variant starting at a
price of INR0.46m. The base diesel variant will be available at INR0.56m (ex-showroom
Delhi).
The Zest, manufactured at the Pimpri and Ranjangaon plant in Pune, comes on a
completely modified X1 platform. It will come with the Revotron 1.2T, the first engine
from the new family of gasoline engines from Tata Motors and will be India's first
Turbocharged Multi-point Fuel Injection (MPFi) petrol engine.
The diesel variant comes with 1.3 litre Quadrajet Diesel engine coupled with the first-in-
class F-Tronic technology-enabled, 5-speed Automated Manual Transmission (AMT),
with both automatic and sequential mode of gear-shifting, developed in collaboration
with Magneti Marelli, Italy.
"We
have launched the much-awaited Zest with 29 segment-first features. It has been
engineered for global customers, by global teams across India, UK, Italy and Korea to
offer a car that matches refinement with performance,"
Tata Motors President,
Passenger Vehicles Business Unit, Ranjit Yadav told to media during launch.
"According
to the Automotive Research Association of India (ARAI) certification, the
Revotron 1.2T delivers 17.6 km/litre and the diesel delivers 23 km/litre, under mandated
test km/litre in normal conditions,"
Tata Motors Head of Design Pratap Bose said to
media.
The company is also offering a 3-year or 1,00,000 km warranty, along with a 3-year or
45,000 km annual maintenance contract (AMC) and free 3 years 24x7 roadside
assistance service.
Tata Motors Zest
TVS launches the Scooty Zest at INR42,300 (ex-showroom Delhi)
TVS Scooty Zest
TVS launched the all-new Scooty Zest. The scooter carries new age design and features
to cater the young segment specifically defined by TVS as females falling in the age-
group of 18 to 24 years.
The scooter enters the already crowded 110cc segment, but TVS tried to highlight it
from the other scooters with vibrant graphics, bold body work and class-first features.
"We
are trying to keep pace with the change in Indian society. We have introduced 110cc
(scooterettes) Jupiter, Wego. The scooter category is fastest growing segment at 26 per
cent and we believe it will reach 30 per cent,"
TVS Motor Company Vice Chairman and
Managing Director Venu Srinivasan told to media during launch.
"Scooty
became (the) most well known brand when it was launched 15 years ago. Scooty
Zest takes (it) to a new level and it is for people who look for more power and comfort,"
he said.
August 2014
26

Dashboard
"Currently
our market share is 15 per cent. We are looking at taking up to 18 per cent
(market-share) in the overall two wheeler segment",
he said, adding that scooterette
industry was around 30,000 units per month.
"Right
now we have the scooters ranging from basic Scooty Streak all the way to Jupiter.
In another six months you will see Victor joining them (existing motorcycles Sport,
StarCity+, Phoenix and the Apache),"
he said.
The Scooty Zest will be the range-topping model of the Scooty line-up and is the fifth
offering from the TVS brand in the scooter market, which has seen a rapid growth in
recent times. The stylish scooter carries a sticker price of INR42,300 ex-showroom Delhi
and is placed below the TVS flagship scooter, the Jupiter.
On the body, the Scooty Zest looks bigger with large body panels. There is a big multi-
focal headlamp placed on the handle of the scooter while the large and sleek turn
indicators are placed on the redesigned apron. The front mud-guard looks stylish is
made from the elongated apron.
There is a stylish grab-rail, dual-tone color and LED tail-lamp taking care of style of the
scooter. TVS offers 19-litres of under-seat storage, making it one of the biggest in the
class, the front foot-board and seat length has also been increased for extra comfort.
Safety features include skid-less tubeless tyres, parking brake and beeping indicators
while the features that make the Sooty Zest different are the open bottle holder in
front, trade mark EaZy centre stand, easy kick start and auto-choke.
Powering the Scooty Zest is the same engine which also comes with the Wego and
Jupiter but has been moderately tweaked for power and efficiency. The 109 cc, single-
cylinder, air-cooled engine churns out a maximum of 8PS at 7,500 and 8.7 Nm of torque
at 5,500 rpm for the peppy feeling.
ARAI rated mileage stands at 60.1 km per litre making it one of the most fuel efficient
scooters in the market. TVS Scooty Zest will compete against Yamaha Ray and Activa-I,
which have already established them in the market.
August 2014
27

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