Two-wheelers drive overall volumes!

s MotoGaze March 218 Sector View Overweight Volume performance for February 218 Company Gr. YoY Hero Motocorp 2. Bajaj Auto 3.8 TVS Motors 38.1 Maruti Suzuki 15. Tata Motors 34. Ashok Leyland 29.2 Mahindra and Mahindra 19.7 Key players & industry volume growth February 18 Industry HMCL BAL TVS HMSI Maruti TML -1.9-1. -1.3-1.8 M&M Hyundai ALL -1.4.5 1.3.4.4 6.9 5.1 15. 19.7 23.2 2. 3.8 38.1 29.2 32. 34. Key players & industry volume growth YTDFY18 Industry HMCL BAL TVS HMSI Maruti TML M&M Hyundai ALL Research Analyst 1.4 8.2 Nishit Zota nishit.zota@icicisecurities.com 7.7 Vidrum Mehta vidrum.mehta@icicisecurities.com 13.3 14.1 13.3 16. YTDFY18 17.6 MoM YoY 2.6 22.4 Two-wheelers drive overall volumes! March 28, 218 Overall auto volumes continued their strong growth momentum (primarily on account of low base), up 23.2% YoY for February 218. All segments reported healthy volume growth. The 2-W segment (that accounts for ~79% of overall auto volumes) reported robust volume growth of 24.5% YoY, thereby driving overall auto volumes. The growth of the segment was driven by both scooter & motorcycle segment, which grew 24.6%, 26.8% YoY, respectively mainly on account of low base (demonetisation). CV volumes grew 29% YoY. Growth was driven by the LCV segment (up 36.7% YoY) mainly due to increase in demand from e-commerce & container and refrigerator vehicles. M&HCV segment grew 19.9% YoY mainly after stricter implementation of overloading in some states and revival in infrastructure development. The 3-W segment reported strong growth of 78.9% YoY as domestic 3-W volume grew 76.7% YoY mainly due to 1) discontinuance of permits in Maharashtra, 2) new permits released in Delhi and 3) replacement of two-stroke to four-stroke engine in Bengaluru. The 3-W exports also continued to witness a strong demand revival with volumes up 83.3% YoY. The PV segment reported decent volume growth of 6.1% YoY, primarily driven by MSIL, the market leader in the space, which reported strong volume growth of 15% YoY. Domestic tractor volumes grew 38.6% YoY to 47,87 units. MSIL dominates PV space; Bolero enters top 1 PV lists MSIL continues to dominate the PV industry. For February 218, its six models featured in the list of top 1 selling PVs in India. The new Swift has received a good response from consumers. For February 218, it clocked volumes of 17,291 units. According to media reports, the new Swift has crossed 1, bookings while its waiting period is more than eight weeks. MSIL s other models viz. Baleno & Brezza continue to post healthy volume of 15,87 units & 11,62 units, respectively. Hyundai India s three models viz. Elite i2, Grand i1 & Creta also hold their place in the list of top selling PVs in India. Further, M&M s Bolero entered the highest selling PV list at the tenth place and reported volume of 8,1 units. On a YTDFY18 basis, Bolero has reported an exceptional performance in its UV portfolio (volume up 25.8% YoY). In the 2-W space, Activa & Splendor are top selling brands with volumes of 247,377 & 238,722 units, respectively. Long term story intact The higher focus on rural & infrastructure development in Budget 218 will favour the auto space. The auto industry weathered key structural events like implementation of BS IV norms and GST, with its volumes recovering, up 14.1% in YTDFY18. Overall 2-W, PV, CV volume growth was at 15.2%, 6.1% YoY, 14.9% YoY, respectively, in YTDFY18. We expect the strong growth momentum to continue in FY19E (expect ~1% growth). The government s focus on the rural economy will aid the demand for 2-W players in key under penetrated agrarian states. A buoyant outlook on infrastructure spending & pre-buying ahead of BS VI migration is expected to catalyse M&HCV growth. For February 218, the BSE Auto Index was down ~5% in line with the benchmark index. The pace of electric vehicle (EV) adoption and BS-VI implementation by 22 is expected to lead to huge investments & partnership in R&D. We believe the major OEMs business will adopt the new technology smoothly. However, ancillary companies producing internal combustion engine related parts are expected to face challenges. The new technology can prove to be a threat to the incumbent in the battery space, with new players and OEMs entering the space. In our I- direct auto coverage, we remain bullish on frontline OEM stocks like Maruti Suzuki and Eicher Motors.

Overall 2-W segment volumes grew 24.5% YoY in February 218. Over last year, HMSI has outperformed the 2-W industry growth, thereby expanding its market share by 18 bps YoY to 29%. On the other hand, HMCL continues to enjoy a dominant position with share of 36.2%. With the underperformance on a YTDFY18 basis, BAL has lost market share of ~17 bps YoY to 9.8% Motorcycle, scooters both drive two wheeler volumes! For February 218, overall 2-W volumes grew 24.5% YoY, supported by both motorcycle & scooter segments, which grew 24.6% & 26.8% YoY, respectively. Overall 2-W domestic volumes grew 23.8% YoY while exports volumes grew 29.8% YoY. In terms of players, the top two - HMCL & HMSI reported strong volume growth of 2% YoY & 32% YoY, respectively. The other 2-W players viz. TVS & BAL (third & fourth largest player) reported volume growth of 36.9% YoY & 21.5% YoY, respectively. The 3-W volumes grew 78.9%, supported by a revival in export volume (up 83.3% YoY) and higher demand in domestic market (up 76.7% YoY), mainly due to discontinuance of permits in Maharashtra, new permits released in Delhi and replacement of two-stroke to four-stroke engine in Bengaluru. Domestic tractor industry volumes grew 38.6% YoY to 47,87 units & 19.4% YoY to 638,191 units for February 218 & YTDFY18, respectively. Market share movement According to data released by the Society of Indian Automobile Manufacturers (Siam), the domestic market share of two and threewheeler players as of February 218 is mentioned below. Exhibit 1: Domestic market share movement in two-wheelers 4 35 3 25 2 36.6 36.2 36.2 Jan-18 29. 29. 27.2 15 14.1 14.2 14.1 1 11.5 9.8 9.8 1.6 1.8 1.8 5, Data used is YTD Bajaj Auto Hero MotoCorp TVS Motors HMSI Others Exhibit 2: Domestic market share movement in three-wheelers In February 218, domestic 3W volumes grew 78.9% YoY, mainly supported by market leader Bajaj Auto, which reported strong volume growth of 116.1% YoY, thereby gaining market share by 79 bps YoY to 57.7% Others M&M Piaggio Bajaj Auto Jan-18 9.3 9.4 1.8 8.5 8.6 1. 24.4 24.8 29.4 57.7 57.2 49.8 1 2 3 4 5 6 7, Data used is YTD Page 2

Overall motorcycle volumes increased 26.8% YoY in February 218. HMCL continues to be the market leader in the space with a share of ~51% Exhibit 3: Domestic market share movement in motorcycles 7 Jan-18 6 5.9 51.3 51.2 5 4 3 2 18.2 15.7 15.8 14.3 15.7 15.7 1 7. 7.3 7.2 Bajaj Auto Hero Motocorp TVS motor Honda Source: Company, ICICIdirect.com Research Overall scooter volumes grew 24.6% YoY in February 218. HMSI maintained its leadership position in scooters with market share of ~57% YoY. TVS also reported strong growth of 35.6% YoY; thereby expanding its market share by 16 bps YoY to 16.1% Exhibit 4: Domestic market share movement in scooters/scooters 7 Jan-18 6 57.3 57.3 57.3 5 4 3 2 1 14.1 13. 14.5 16.1 16.1 13. 14.1 13.6 13.5 Hero Motocorp TVS Motors Honda Others, Data used is YTD Page 3

Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 HMCL continues to dominate the executive motorcycle segment (<=125 cc) in India with a market share of ~59%. HMSI s volumes have been more volatile thereby resulting in wide fluctuation in its market share in the last 12 months Exhibit 5: Market share movement in executive motorcycle (<125 cc) segment* 7 6 5 59. 14.4 2 16 4 12 3 2 1 7.4 19.2 8 4 Bajaj Auto (RHS) Hero Motocorp (LHS) TVS (RHS) HMSI (RHS) * only top four two-wheeler OEMs BAL continues to dominate the executive motorcycle segment (<=125 cc) in India with market share at ~55%. HMSI s volumes have been more volatile thereby resulting in wide fluctuation in its market share in the last 12 months Exhibit 6: Market share movement in motorcycle greater than 125 cc segment 8 7 6 5 4 3 2 55.4 2.8 2.1 28 24 2 16 12 8 1 3.7 4 Bajaj Auto (LHS) Hero Motocorp (RHS) TVS (RHS) HMSI (RHS) *only top three vehicle two-wheeler OEMs Page 4

245 244 294 277 25 265 284 264 229 289 298 37 326 4 ('s) 29 28 64 43 36 37 62 51 64 6 57 59 Oc t-17 Dec -17 459 537 53 561 547 554 599 63 55 525 414 563 556 ('s) ('s) Hero MotoCorp: Sales volumes 75 6 45 3 15 73 65 65 73 77 91 8 81 8 79 74 69 59 Motorcycles Scooters 1 9 8 7 6 5 4 3 2 1 Hero MotoCorp (HERHON) Hero MotoCorp s (HMCL), the market leader in the 2-W space, volume grew 2% YoY to 629,597 units. Its motorcycle & scooter volume grew 21.1% YoY & 12.6% YoY, respectively Its top selling model Splendor volume grew 16% YoY. HF Deluxe & Glamour reported strong volume growth of 37.6% YoY & 67.3% YoY, respectively. Among its scooter portfolio, volumes of Maestro & Pleasure grew 12.4% YoY & 38.3% YoY, respectively, while volumes of Duet declined 4% YoY HMCL, to revive its focus on the growing premium motorcycle segment, unveiled all new Xtreme 2R and will be across dealership from April 218. The management expects HMCL to maintain its strong growth trajectory, going forward Exhibit 7: Volume performance (in units) Segment %chg Jan-18 %chg YTDFY'18 YTDFY17 %chg Motorcycles 556,16 459,217 21.1 562,931-1.2 6,29,32 5,297,588 13.8 Scooters 73,581 65,355 12.6 78,57-6.3 827,394 756,57 9.4 Total Sales 629,597 524,572 2. 641,51-1.9 6,856,696 6,54,95 13.3 Export(inc. above) 24,242 12,618 92.1 22,114 9.6 178,851 154,172 16. Exports (% of sales) 3.9 2.4 145 bps 3.4 4 bps 2.6 2.5 6 bps Source: Company, Siam Bajaj Auto: Sales volumes 5 45 4 35 3 25 2 15 1 5 42 38 48 46 45 39 4 35 34 49 45 43 5 48 46 44 42 4 4 38 36 34 32 3 Bajaj Auto (BAAUTO) Bajaj Auto s (BAL) 2-W volumes grew 21.5% YoY, driven by both exports & domestic volumes, which were up 18.9% YoY & 23.3% YoY, respectively. On a YTDFY18 basis, its domestic volumes declined 1.9% YoY resulting in a significant loss of market share (down 17 bps YoY) in the 2-W space to 9.8%. In all likelihood HMSI will displace BAL to be the 2 nd largest motorcycle player. Pulsar volumes grew 8.4% YoY to 8,742 units (driven by 15-2 cc category). Volumes of its entry level segment (75-11 cc), which includes brands like CT, Platina, Boxer & Discover, grew 44.5% YoY to 154,514 units. This was mainly due to strong exports growth in Boxer & domestic growth in Discover. Volumes of CT declined 22.6% YoY while Platina volumes grew 66.1% YoY. Volumes of V15 & V12 declined 41.1% YoY to 5,624 units & 9% YoY to 687 units. Overall volumes of Dominar were at 3,532 units Two-Wheelers Three-Wheelers % exports Its overall 3-W volumes grew 111.4% YoY after domestic volumes grew 129.1% YoY driven by discontinuance of permits in Maharashtra, new permits released in Delhi and replacement of two-stroke to four-stroke engine in Bengaluru. In the domestic 3-W market, BAL has gained market share by 79 bps YoY to 57.7%. The revival in the export market lifted its volumes up 86.1% YoY Exhibit 8: Volume performance (in units) Segment %chg Jan-18 %chg YTDFY'18 YTDFY17 %chg Total 2-wheeler sales 297,514 244,958 21.5 288,936 3. 3,99,395 2,975,697 4.2 2W exports 122,25 12,671 18.9 125,825-3. 1,283,85 1,125,755 14. 2W domestic sales 175,489 142,287 23.3 163,111 7.6 1,815,59 1,849,942-1.9 Total 3-wheeler sales 6,369 28,555 111.4 64,211-6. 573,48 417,296 37.3 3W exports 21,835 11,733 86.1 25,129-13.1 248,24 181,9 36.4 3w domestic sales 38,534 16,822 129.1 39,82-1.4 325,24 235,396 38.1 Total Sales 357,883 273,513 3.8 353,147 1.3 3,672,443 3,392,993 8.2 Total Domestic Sales 214,23 159,19 34.5 22,193 5.9 2,14,614 2,85,338 2.7 Total Exports 143,86 114,44 25.7 15,954-4.7 1,531,829 1,37,655 17.1 Exports as % of sales 4.2 41.8-163 bps 42.7-255 bps 41.7 38.5 317 bps Source: Company, Siam Page 5

12 85 183 176 145 168 192 183 144 151 124 17 164 25 254 ('s) 369 334 271 344 293 282 239 319 325 394 386 58 69 96 1 118 112 19 112 144 125 93 95 99 113 84 81 86 9 92 114 78 84 86 ('s) 78 94 71 6 122 17 72 69 79 72 66 62 74 83 76 85 TVS Motors: Sales volumes 4 35 3 25 2 15 1 5 Motorcycles Scooters Mopeds TVS Motors (TVSMOT) TVS volumes (2-W+3-W) for February 218 came in at ~2.9 lakh units, up 38.1% YoY. The 2-W volumes grew 36.9% YoY while 3- W volumes grew 86.3% YoY Motorcycle segment volumes grew 95.5% YoY to 113,296 units. Volumes of Apache & Star City (family) grew 95.1% YoY to 42,85 units & 81.4% YoY to 41,785 units. Volumes of Sport grew 17.1% YoY to 15,498 units. Its scooter volumes grew 35.6% YoY to 93,573 units. This was after overall volumes of Jupiter grew 23.5% YoY to 64,182 units. Volumes of Zest & Pep+ grew 198.1% YoY to 6,9 units & 1.4% YoY to 11,326 units. Volumes of its newly launched Ntorq were at 8,39 units. On the flip side, Wego volumes declined 21.4% YoY to 3,747 units. Its moped volumes declined 5.3% YoY at 74,73 units Export volumes grew 57.6% YoY to 58,564 units as 2-W & 3-W volumes grew 55.2% YoY to 5,589 units & 74.2% YoY to 7,975 units, respectively Exhibit 9: Volume performance (in units) Segment %chg Jan-18 %chg YTDFY'18 YTDFY17 %chg Motorcycles 113,296 57,946 95.5 98,649 14.8 1,221,164 979,577 24.7 Scooters 93,573 69,2 35.6 85,521 9.4 1,33,946 786,69 31.4 Mopeds 74,73 78,233-5.3 78,825-6. 796,551 839,384-5.1 Total 2-W Sales 28,942 25,199 36.9 262,995 6.8 3,51,661 2,65,651 17.1 3-Wheelers 9,731 5,223 86.3 8,86 1.5 87,79 63,892 37.4 Total Sales 29,673 21,422 38.1 271,81 6.9 3,139,451 2,669,543 17.6 Exports(incl. in above) 58,564 37,167 57.6 42,82 36.8 51,418 385,372 32.4 Exports as % of sales 2.8 18.1 16.3 16.7 14.8 Domestice sales 232,19 173,255 34. 228,999 1.4 2,629,33 2,284,171 15.1 Source: Company, Siam HMSI: Motorcycles & scooter sales volumes 675 6 525 45 375 3 225 15 75 Moto rcyc le s Sco oters Honda Motorcycles & Scooters India (HMSI) For February 218, HMSI s overall volumes grew 32% YoY to 519,782 units. This was after domestic motorcycle & scooter volume grew 36.8% YoY & 3.1% YoY, respectively Domestic motorcycles volumes grew 36.8% YoY as volumes of CB Shine grew 21.7% YoY to 83,736 units. Domestic volumes of Dream & Livo grew 83.8% YoY to 3,141 units & 424.4% YoY to 15,486 units, respectively. Domestic scooter volumes grew 39.6% YoY, after Activa volumes grew 13.4% YoY to 243,826 units. Volumes of Dio grew 93.6% YoY to 41,556 units. Volumes of Aviator grew 6.4% YoY to 1,862 units. The newly launched CLIQ & Grazia volumes were at 1,169 units & 23,62 units, respectively, in February 218 Export volumes grew 28.2% YoY to 3,144 units, mainly after scooter volumes, grew 49.6% YoY to 17,39 units. Its export share was at 5.8% of sales Exhibit 1: Volume performance (in units) Segment %chg Jan-18 %chg YTDFY'18 YTDFY17 %chg Motorcycles 164,434 12,17 36.8 169,537-3. 1,81,576 1,459,71 23.4 Scooters 325,24 249,952 3.1 319,318 1.8 3,556,557 2,943,583 2.8 Total Sales 519,782 393,642 32. 517,778.4 5,683,613 4,642,98 22.4 Exports(incl.above) 3,144 23,52 28.2 21,879 37.8 325,48 255,917 27.2 Exports as % of sales 5.8 6. -18 bps 4.2 157 bps 5.7 5.5 21 bps Domestice sales 489,638 37,122 32.3 495,899-1.3 5,358,133 4,386,221 22.2 Source: Company, Siam Page 6

PV segment reports modest growth The overall passenger vehicles segment grew 6.1% YoY to 335,87 units for February 218. Domestic PV volumes grew 7.8% YoY to 275,329 units while exports volumes declined 1% YoY to 6,478 units. Within the subsegment, the utility vehicle (UVs) segment reported healthy growth of 2.4% YoY to 93,396 units, driving overall PV volumes. Volumes of the car segment reported marginal growth of 1.9% YoY to 226,322 units while that of vans declined 4.8% YoY to 16,89 units. MSIL is the market leader and continues to outperform (overall volumes grew 15% YoY to 149,824 units) the overall passenger vehicle space. For February 218, the UV1 sub-segment grew 23% YoY to 68,996 units, driven by Honda Car s (WR-V) volumes were at 3,376 units while Tata Motor s (Nexon) volumes were at 4,337 units. MSIL s Vitara Brezza s overall volumes grew 15.8% YoY to 11,674 units. The facelift of S-Cross lifted its volumes to 4,17 units vs. 2,651 units in February 217. Volumes of Gypsy were at 59 units vs. 16 units in January 217. Hyundai s Creta volumes grew 13.6% YoY to 12,946 units. Volumes in the UV2 space declined 5.9% YoY to 16,34 units. Toyota Innova s volumes grew.9% YoY to 6,129 units. Honda s BR-V declined 11.4% YoY to 942 units. Aggregate volumes of M&M s models in the UV2 category (viz. Scorpio, Bolero Plus, Xylo, XUV5OO) increased.3%yoy to 8,87 units. The segment was impacted after General Motors stopped selling vehicles in India (Enjoy & Tavera total volume was at 75 units in February 217). Commercial vehicle volumes grew 29% YoY to 96,32 units, as M&HCV volumes grew 19.9% YoY to 4,889 units & LCV volume grew 36.7% YoY to 55,431 units. M&HCV volumes were driven by increase in restrictions on overloading and pick-up in infrastructure projects while LCV volumes were aided by an increase in demand from e-commerce sector and also due to higher demand from container & refrigerator vehicles. The MHCV/LCV volume ratio was at 42:58 in February 218 vs. 28:72 in April 217 vs. the average ratio 41:59 over the past 36 months. Market share movement According to Siam, the domestic market share for passenger vehicles (PV) and commercial vehicles (CV) in February 218 was as follows: Exhibit 11: Domestic market share movement in passenger vehicles MSIL continues to dominate the PV segment with market share of 5% in February 218 Others Honda Cars M&M Tata Motors Hyundai Maruti 14.6 Jan-18 14.6 17.3 5.2 5.3 5. 7.4 7.4 7.6 6.3 6.2 5.6 16.3 16.4 16.8 5.1 5.1 47.6 1 2 3 4 5 6, Data used is YTD * passenger vehicles as per Siam include Vans like Gio, Maxximo, Eeco, Ace Page 7

Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Exhibit 12: Market share movement in A2 segment The A2 (Mini & Compact) segment is the bread & butter category of the passenger car segment. The segment witnessed a demand revival, with volumes up 8.9% YoY on a YTDFY18 basis, primarily supported by market leader MSIL, which grew 17.2% YoY in the same segment 8 7 6 5 4 3 2 1 69.5 64. 29. 23.2 Hyundai Maruti, Top two PV OEMs considered M&HCV & LCV volumes increased 19.9% YoY & 36.7% YoY, respectively, in February 218. Thus, overall CV volumes grew 29% YoY Tata Motors continues to be the market leader in the overall CV space with market share of ~44%. It is followed by M&M with market share of ~26% in January 218 Exhibit 13: Domestic market share movement in commercial vehicles Jan-18 5 43.3 44.1 44.1 45 4 35 3 25.2 25.8 25.6 25 18.5 18.2 18.3 2 15 13.1 11.9 12. 1 5 ALL M&M Tata Motors Others Data used is YTD The MHCV/LCV ratio was at 42:58 in February 218 vs. 28:72 in April 217, after M&HCV volumes sharply recovered from July 217 onwards. Average M&HCV volumes (in the past 36 months) has been ~41% of total CV sales Exhibit 14: Segmental share in CVs 8 7 6 54.2 57.5 5 45.8 42.5 4 3 2 1 M&HCV LCV Page 8

13 16 ('s) 14 151 137 165 164 163 146 155 13 151 15 Feb'17 Mar'17 Apr'17 May'17 June'17 July'17 Aug'17 Sept'17 Oct'17 Nov'17 Dec'17 Jan'18 Feb'18 (% share of total volumes) 41.9 47.1 49.4 44.4 54.6 51.4 49.8 57.4 54.2 49.6 55.1 56.9 ('s) 71.6 18. 33.4 27.4 29.1 31.1 41.4 34.6 4.6 36.6 12.9 4. 46.5 44.3 45.7 ('s) 1.9 11.3 14.1 15.1 14.4 15.7 17.6 16.6 17.4 14.4 2.3 18.1 Tata Motors: Domestic sales volume 7 6 5 4 3 2 1 CV Sa les PV Sales Source: Company, ICICIdirect.com Research Jaguar Land Rover sales volume 1 8 6 4 2 8 7 6 5 4 3 2 1 % Jaguar % LR JLR total volumes(rhs) Source: Company, ICICIdirect.com Research Tata Motors (TATMOT) Tata Motors overall standalone volumes increased 34% YoY to 63,761 units, backed by its domestic CV & PV segment, which grew 43.5% YoY & 27.3% YoY, respectively Domestic M&HCV volumes increased 26% YoY to 18,944 units while LCV volumes grew 62.7% YoY to 22,278 units driven by 1) restrictions on overloading; 2) pick-up in infrastructure projects, 3) increase in demand from e-commerce; 4) higher demand from container & refrigerator vehicles & 5) higher replacement demand. On the PV side, volumes of Tiago & Tigor were at 6,711 units & 2,876 units, respectively. Within its UV portfolio, volumes of Hexa (launched in January 217) & Nexon (launched in September 217) were at 9 units & 4,337 units, respectively, in February 218 JLR s wholesale volumes grew 4.3% YoY at 56,95 units. Jaguar volumes grew.9% YoY to 16,245 units. Land Rover volumes grew 5.7% YoY to 4,66 units. We believe the Chinese market would have largely supported the overall growth Exhibit 15: Volume performance (in units) Segment %chg Jan-18 %chg YTDFY'18 YTDFY17 %chg Domestic MHCV 18,944 15,31 26. 16,12 18.3 146,757 116,222 26.3 Domestic LCV 22,278 13,691 62.7 23,374-4.7 23,44 142,362 42.9 Domestic Pass.Car Sa 11,653 11,652. 13,415-13.1 122,917 111,5 1.2 Domestic UV 6,118 2,35 165.4 6,64-7.9 44,138 14,52 214.1 Exports 4,768 4,895-2.6 5,183-8. 45,689 53,468-14.5 Total Sales 63,761 47,574 34. 64,624-1.3 562,95 437,64 28.6 Jaguar 16,245 16,96.9 16,18.9 155,198 158,184-1.9 Landrover 4,66 38,48 5.7 33,523 21.3 42,91 37,817 8.4 Total JLR Sales 56,95 54,576 4.3 49,631 14.7 557,289 529,1 5.3 Source: Company, Siam Maruti Suzuki India (MARUTI) Maruti Suzuki s (MSIL) volumes grew 15% YoY to 149,824 units Maruti Suzuki India: Sales volumes 18 16 14 12 1 8 6 4 2 7.3 8.8 Total Sa les Ex port % 14 12 1 6 4 2 Volumes of its domestic mini car segment grew 2.1% YoY, as volumes of Alto & Wagon R grew 3.5% YoY & 1.2% YoY, respectively. Domestic volumes of Baleno & Vitara Brezza were at 15,87 & 11,62 units, respectively. DZire s (domestic) volumes stood at 17,784 units. New Swift clocked volumes of 17,291 units. Export volumes grew 24.9% YoY to 11,924 units MSIL has commissioned a study to gauge the requirement of potential customers as it embarks on the journey to bring on road affordable electric vehicle by 22 Exhibit 16: Volume performance (in units) Segment %chg Jan-18 %chg YTDFY'18 YTDFY17 %chg Omni, Eeco,Versa 12,425 14,195-12.5 12,25 1.4 141,448 14,381.8 Alto, Wagon-R, Zen, Swift,Ritz, Celerio, Dzire,Baleno 99,2 8,81 23.6 11,184-2.2 1,69,262 97,159 17.9 SX4, Swift Dzire Tour, Ciaz 4,897 8,46-42.1 5,62-3.3 54,592 9,976-4. Total Passengers 116,324 12,736 13.2 118,496-1.8 1,265,32 1,138,516 11.1 Gypsy, Vitara,Ertiga,Brezza 2,324 17,863 13.8 2,693-1.8 23,995 177,43 3.2 Total Domestic 136,648 12,599 13.3 139,189-1.8 1,496,297 1,315,946 13.7 LCV (Super Carry) 1,252 136 NA 1,411 NA 8,621 596 NA Exports 11,924 9,545 24.9 1,751 1.9 114,58 112,298 1.6 Total Sales 149,824 13,28 15. 151,351-1. 1,618,976 1,428,84 13.3 Exports as % of sales 8. 7.3 7.1 7. 7.9 Source: Company, Siam. Page 9

Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 ('s) 15. 19.3 18.8 16.5 18.3 26. 25.6 22.8 21.9 2.5 32.9 4.3 45.6 Mar-17 May-17 Jul-17 Sep-17 Oc t-17 Nov-17 Ja n-18 ('s) 42.7 39.4 35.7 41.9 41.7 42.1 38.6 39.2 56. 53.7 51.1 52. 51.1 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 4.5 6.1 11.3 9.2 9. 1.6 11.8 9.1 2.6 1.6 15.3 2.9 15.9 13.6 13.7 ('s) 3.1 3. 2.7 3. 3.8 3.6 3.8 3.4 3.3 4.46 4.46 Ashok Leyland: Total sales Ashok Leyland (ASHLEY) 25 2 15 Ashok Leyland s (ALL) volumes grew 29.2% YoY to 18,181 units, as M&HCV volumes grew 21.2% YoY to 13,726 units. Its LCV segment grew 62.7% YoY to 4,455 units. On a YTDFY18 basis, its M&HCV market share has improved 55 bps YoY to ~34% YoY 1 5 Volumes of M&HCV passenger declined 6.9% YoY to 1,757 units while M&HCV goods volumes grew 26.8% YoY to 11,969 units. Exports grew 16.5% YoY, with overall share at 5.3% of sales M&HCV LCV ALL aims to diversify its business with focus on 1) LCV aiming to launch one product per quarter; 2) Exports plans to increase export revenue to >3% from the current <1%; 3) Aftermarket aims to increase higher margin aftermarket business; 4) Defence aims to increase its revenue by 1x (from the current revenue of ~ 5 crore to 5, crore, going forward) Exhibit 17: Volume performance (in units) Segment Mar-17 %chg Jan-18 %chg YTDFY'18 YTDFY17 %chg M&HCV Passenger 1,757 1,888-6.9 1,871-6.1 17,941 2,22-11.3 M&HCV Goods 11,969 9,441 26.8 11,771 1.7 96,434 77,84 23.9 LCV 4,455 2,738 62.7 4,458 -.1 38,23 28,35 34.1 Passenger Vehicles - NA NA - - NA Total Sales 18,181 14,67 29.2 18,1.4 152,398 126,374 2.6 Exports 968 831 16.5 1,616-4.1 15,319 1,618 44.3 Exports as % of sales 5.3 5.9 8.9 1.1 8.4 Source: Company, Siam Mahindra and Mahindra: Sales volume Mahindra and Mahindra (MAHMAH) 7 6 5 4 3 M&M s overall automotive volumes grew 19.7% YoY to 51,127 units. Its core domestic UV volumes grew 7.4% YoY to 2,977 units. Overall volumes of Bolero (family) grew 24.4% YoY to 8,82 units. Volumes of TUV3OO grew 6.7% YoY to 2,523 units while KUV1OO volumes declined 14.6% YoY to 2,561 units. Volumes of Scorpio increased 4.5% YoY to 5,72 units while volumes of XUV5OO declined 14.8% YoY to 2,118 units 2 1 M&M s tractor volumes grew 36.5% YoY to 2,483 units. Domestic tractor industry volumes grew 38.6% YoY to 47,87 units & 19.4% YoY to 638,191 units for February 218 & YTDFY18, respectively Mahindra and Mahindra: Tractor sales 5 45 4 35 3 25 2 15 1 5 Exhibit 18: Volume performance (in units) Segment %chg Jan-18 %chg YTDFY'18 YTDFY17 %chg UV s 2,977 19,529 7.4 22,235-5.7 29,322 198,714 5.3 4-Wheeler pickups 19,225 15,94 27.4 19,39 -.4 176,521 151,416 16.6 M & HCV 1,721 1,289 33.5 1,693 1.7 14,781 12,653 16.8 Total 4wheeler Sales 43,335 36,988 17.2 44,688-3. 413,762 369,813 11.9 3-Wheeler 5,138 3,426 5. 4,744 8.3 48,23 47,244 1.6 Total Domestic Auto Sales 48,473 4,414 19.9 49,432-1.9 461,785 417,57 1.7 Exports 2,654 2,3 15.4 2,616 1.5 24,83 34,542-28.2 Total Auto Sales 51,127 42,714 19.7 52,48-1.8 486,588 451,599 7.7 Exports as % of sales 5.2 5.4 5. 5.1 7.6 Tractors - Domestic 19,28 13,834 39.4 2,647-6.6 274,976 23,436 19.3 - Exports 1,23 1,173 2.6 1,228-2. 14,13 13,219 6.9 Total Tractors 2,483 15,7 36.5 21,875-6.4 289,16 243,655 18.7 Exports as % of sales 5.9 7.8 5.6 4.9 5.4 Source: Company, Siam Page 1

Top domestic model wise volumes for February 218 Exhibit 19: Top 1 passenger vehicle Models sold in India (in units) S.No. Models Models 1 Alto 19,524 Alto 19,76 2 DZIRE TOUR 16,613 DZIRE 17,784 3 Wagon R 13,555 Swift 17,291 4 Grand i1 12,862 Baleno 15,87 5 Swift 12,328 Wagon R 14,29 6 Elite i2 1,414 Elite i2 13,378 7 VITARA BREZZA 1,46 VITARA BREZZA 11,62 8 Kwid 9,648 Grand i1 1,198 9 Creta 9,2 Creta 9,278 1 Celerio 8,315 Bolero 8,1 Exhibit 2: Top 1 two-wheelers Models sold in India (in units) S.No. Models Models 1 Activa 217,98 Activa 247,377 2 Splendor 28,571 Splendor 238,722 3 HF Deluxe 121,92 HF Deluxe 165,25 4 TVS XL Super 77,53 CB Shine 82,189 5 Passion 69,763 TVS XL Super 71,931 6 CB Shine 66,42 Glamour 66,64 7 Pulsar 53,932 Jupiter 63,534 8 Jupiter 51,817 Passion 61,895 9 Classic 35 4,768 Pulsar 6,772 1 Glamour 39,288 Classic 35 48,557 Page 11

Upcoming 2-Ws & 4-Ws in India Exhibit 21: Upcoming OEM wise 2-Ws and 4-Ws in India S.No. OEM Bramd / Model Launch Date 1 Maruti Suzuki Vitara Apr-18 2 Maruti Suzuki New Ertiga Jun-18 3 Maruti Suzuki Jimmy Dec-19 4 Hyundai New Eon Apr-18 5 Hyundai i2 Sport Jun-18 6 Hyundai Kona Nov-18 7 Mahindra & Mahindra New XUV5OO Aug-18 8 Honda Cars Honda Civic Mar-18 9 Honda Cars Amaze Jun-18 1 Honda Cars Honda CR-V Mar-19 11 Hero Motocorp Dare 125 Mar-18 12 Hero Motocorp Hatsur Mar-18 13 Hero Motocorp Xtreme 2R Apr-18 14 Hero Motocorp Xpluse Jun-18 15 Hero Motocorp Duet-E Nov-18 16 Hero Motocorp Duet 125 Nov-18 17 Hero Motocorp Maestro Edge 125 Dec-18 18 TVS Motors Dazz Mar-18 19 Eicher Motors Continental GT 65 Jun-18 Source: Company, ICICIdirect.com Research, Autondtv Page 12

U.P. Maharashtra Tamil Nadu Andhra Pradesh Gujarat Karnataka Bihar Madh. Prad. Rajasthan West Bengal 251951 16685 147758 1427179 119888 121642 876549 877697 13863 911788 99223 9574 697751 564264 846472 69578 88876 816671 766824 689959 Maharashtra U.P. Gujarat Kerala Karnataka Tamil Nadu Delhi Haryana Rajasthan Telangana 26168 17363 213525 188788 192353 175299 166716 178216 162866 1593 148487 14492 125119 1225 11995 15788 9144 9746 28598 298564 State wise sales mix for 9MFY18 (April December 217) State wise market share of PV for 9MFY18 Exhibit 22: Top 1 state wise PV volume for 9MFY18 (in units) Others 3% Maharasht ra 11% U.P. 8% Gujarat 9% 35 3 25 2 18.8 13.1 9MFY18 (units) 9MFY17 (units) YoY growth % 25 2 15 12.6 9.7 1 Telangana 4% Rajasthan 5% Haryana 5% Delhi 6% Tamil Nadu 7% Kerala 8% Karnataka 7% 15 1 5-6. -6.5 2.4 3.1 4.2 5.8-5 -1 State wise market share of 2-W for 9MFY18 U.P., 13% Exhibit 23: Top 1 state wise 2-W volume for 9MFY18 (in units) 9MFY18 (units) 9MFY17 (units) YoY growth % Others, 29% West Bengal, 5% Rajasthan, 6% Madh. Prad., 5% Bihar, 5% Karnataka, 6% Maharashtra, 1% Andhra Pradesh, 6% Gujarat, 7% Tamil Nadu, 8% 25 2 15 1 5 28.2 3.1 3 23.7 21.7 25 2 13.8 15 8.7 11.11 5-1.5 -.1 1. -5 Page 13

Gujarat Maharashtra Karnataka Andhra Pradesh Telangana U.P. Kerala Bihar Tamil Nadu Madh. Prad. 39967 4166 29623 3698 3382 44641 26565 26654 27633 29135 23366 2257 26852 28745 2827 2162 1667 13132 52386 99745 Maharashtra U.P. Tamil Nadu Rajasthan Karnataka Andhra Pradesh Gujarat Haryana West Bengal Assam 53994 432 41444 4159 38834 34156 37415 32157 3421 33636 34157 34957 32353 247 3121 27532 2948 16667 7765 68986 State wise sales mix for 9MFY18 (April December 217) State wise market share of CV for 9MFY18 Exhibit 24: Top 1 state wise CV volume for 9MFY18 (in units) Others 3% Assam 4% West Bengal 5% Haryana 6% Gujarat 6% Andhra Pradesh 6% Maharashtra 13% U.P. 9% Karnataka 7% Rajasthan 7% Tamil Nadu 7% 9 8 7 6 5 4 3 2 1 9MFY18 (units) 9MFY17 (units) YoY growth % 4 33.9 35 31. 3 25.725 2 11.7 13.7 16.4 13.3 15 1 5.9 1.1-2.3-5 State wise market share of 3-W for 9MFY18 Others, 22% Madh. Prad., 4% Tamil Nadu, 5% Bihar, 6% Kerala, 5% U.P., 6% Gujarat, 9% Maharashtra, 23% Karnataka, 7% Andhra Pradesh, 7% Telangana, 6% Exhibit 25: Top 1 state wise 3-W volume for 9MFY18 (in units) 9MFY18 (units) 9MFY17 (units) YoY growth % 12 1 9.4 1 8 8 6 4 6 22.32 4 5.9-4.1-3.5 -.3-5.2-6.6-3.7 2-25.9-2 -4 Page 14

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This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject ICICI Securities and affiliates to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction. The company has been received a mandate from Mahindra and Mahindra. The report is prepared based on publicly available information. Page 16