Auto shares rise on strong April sales numbers
Shares of Indian auto companies, including Tata Motors Ltd and Muruti Suzuki India Ltd, gain on Wednesday after they reported strong April sales numbers
New Delhi: Shares of Indian auto companies, including Tata Motors Ltd and Muruti Suzuki India Ltd, rose on Wednesday after they reported strong April sales numbers.
India’s top car makers reported an 11.99% growth in sales in April, as sales recovered in semi-urban and rural markets, besides stable urban demand boosted by the auspicious Akshaya Tritiya festival.
The NSE Nifty Auto index rose 0.57% led by Baja-Auto, which was up 1.98%, Tata Motors 1.88%, Maruti Suzuki 0.91% and HeroMotoCorp 0.74%.
At 10.15am, BSE Sensex traded lower by 13.19 points, or 0.04%, to 35,147.17, while the Nifty 50 fell 14.55 points, or 0.14%, to 10,724.80.
The top five passenger car makers—Maruti Suzuki India Ltd, Hyundai Motor India Ltd, Mahindra and Mahindra Ltd, Tata Motors Ltd, and Toyota Kirloskar Motor Pvt. Ltd—sold 246,482 units during the month, up from 220,083 units a year ago.
Maruti Suzuki, the country’s largest passenger car maker, reported a 13.37% jump in sales from a year earlier to 147,548 units. The compact car segment, comprising the Baleno, Swift and Ignis hatchbacks, led the way with a 31.85% growth over a year ago to 83,834 units.
Tata Motors sold 17,235 units, a 34.37% jump from a year earlier, on the back of continued demand for the Tiago hatchback and Nexon compact SUV, besides other new launches, according to Mayank Pareek, president of the passenger vehicles division at the Tata Group flagship.
Homegrown auto conglomerate Mahindra and Mahindra Ltd posted a 13.08% jump in sales to 21,927 units. Rajan Wadhera, president of the automotive division at M&M, is “confident of this positive momentum continuing in Q1FY19”.
Going forward, Icra Ltd has forecast a 9-10% sales growth for passenger vehicles, Ray said, adding increased government spending on road and infrastructure building will be positive for auto sales during the fiscal.
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