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Business News/ Markets / Stock Markets/  Bajaj Auto, Hero, TVS, M&M, Tata Motor share price gain as Passenger Vehicles, Two-wheeler sales shine in January

Bajaj Auto, Hero, TVS, M&M, Tata Motor share price gain as Passenger Vehicles, Two-wheeler sales shine in January

Stock Market Today: Bajaj Auto, TVS, Hero MotoCorp, M&M share price gained more than 1% on Friday. Bajaj TVS, Hero reported 22-24% y-o-y growth in two-wheeler sales. M&M, Maruti, Tata Motors passenger Vehicle sales grew 12-30% y-o-y. Commercial Vehicles, Tractor however saw tepid sales growth.

Bajaj Auto, Hero, TVS, M&M tata Motors share price gain as Passenger Vehicles, two wheelers sales shine in JanuaryPremium
Bajaj Auto, Hero, TVS, M&M tata Motors share price gain as Passenger Vehicles, two wheelers sales shine in January

Hero MotoCorp, Bajaj Auto, TVS Motor Company , Mahindra and Mahindra, Tata Motors share price gained as two-wheelers and Passenger Vehicles reported strong sales volume growth during January

The over all Auto wholesale numbers for the month of January remained strong with growth being led by passenger vehicles and two wheeler sales even though Commercial vehicles and tractors saw tepid growth. 

Post good festive season sales in the month on November that helped reduced channel inventories, the wedding season sales further helped in December . Thus January offered good growth opportunities for Auto OEM (original equipment manufacturers) and they did not disappoint. 

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Passenger Vehicles (PV) segment also benefitted from the low base of last year while Two wheeler segment continued its strong momentum seen since November. 

The Commercial Vehicle and tractor sales nevertheless remained tepid.

Analysts at Jefferies India Pvt Ltd in their auto numbers review report observed that Indian auto industry witnessed a wide divergence in wholesale growth across segments in January with volumes rising 20% YoY for two wheelers and 15% for Passenger Vehicles, but falling 11-15% year-on-year for trucks and tractors. Registrations grew 15-21% YoY for two-wheelers, passenger Vehicles and tractors, and were up 5% YoY for trucks as per Jefferies. 

Bajaj Auto, TVS Motors and Hero MotoCorp reported very strong 22-24% YoY growth amongst two wheelers.

In the passenger Vehicles space Maruti Suzuki reported 13% growth in the domestic passenger vehicle sales volumes, Including exports Maruti's sales grew 15.5% during January.

Mahindra & Mahindra also reported domestic passenger vehicles sales rise 30% yoy in January 2024.  

For Tata Motors while total Passenger Vehicle Sales of 54,033 units, grew 12% YoY, it was the Commercial Vehicle sales that pulled down the show.  Total commercial vehicle Sales were down 2% YoY for Tata Motors

For Ashok Leyland also domestic commercial Vehicle sales were down 8%. Including export they were down 7% year-on-year.

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Analysts at Antique Stock Broking said that volumes grew by 16% and 22% in passenger Vehicles and two wheelers respectively on a year-on-year basis while for commercial vehicles volumes were flattish and tractors volumes declined by 15% year-on-year. Two wheeler volume, except for RE, surprised with a very strong uptick driven by robust domestic demand, particularly in the commuter segment.

Overall, auto OEMs reported strong volumes in January' 2024 were driven by Passenger Vehicles and two-wheelers while volumes were slightly weaker in tractors and Commercial Vehicles, said analysts at Antique Stock Broking

Two-wheeler OEMs showed robust growth owing to the premiumization trend and an uptick in rural sales driven by the wedding season, said Dhruv Mudaradi, Research Analyst, Stoxbox. On the other hand, the CV wholesales have declined across OEMs primarily due to the underperformance of the Medium and Heavy commercial vehicles segment. The Red Sea issue impacted the export performance across all OEMs, except for Maruti Suzuki, as per Mudaradi. The shipments to Europe have been impacted more than the shipments to the America.

Further, several OEMs have announced price hikes effective from January-February 2024, citing an increase in input costs which Mudaradi believes would be absorbed as demand in the higher-end segment is relatively better and entry-level products are supported by promotional schemes.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions




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Ujjval Jauhari
Ujjval Jauhari is a deputy editor at Mint, with over a decade of experience in newspapers and digital news platforms. He is skilled in storytelling, reporting, analysing and writing about stocks, investment ideas, markets, corporates and more. He is based in New Delhi.
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Published: 02 Feb 2024, 01:42 PM IST
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