BackMaruti Suzuki, Hero Moto, Eicher Motors, among other auto stocks fall; Nifty Auto down over 1%
While Eicher Motors share price plunged over 4%, shares of Maruti Suzuki, Hero MotoCorp, Tata Motors, Bajaj Auto fell anywhere between 1% to 3%.
PremiumMaruti Suzuki India, Hero MotoCorp, Eicher Motors, Tata Motors, among other auto stocks traded lower on Tuesday after the companies reported automobile sales for the month of September.
While Eicher Motors share price plunged over 4%, shares of Maruti Suzuki, Hero MotoCorp, Tata Motors, Bajaj Auto fell anywhere between 1% to 3%.
Decline in auto stocks dragged Nifty Auto index over 1% lower. The index was also the top sectoral loser on NSE.
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In the month of September, passenger vehicle (PV) sales and tractor sales disappointed while commercial vehicle (CV) sales came as a surprise.
Domestic two-wheeler wholesales grew 3% YoY while exports remain a mixed bag as per OEMs. Demand for Utility Vehicles remained strong but entry level models continue to display weakness for PVs; overall growth was 4% YoY.
Dispatches for CVs surprised as they grew 23.5% YoY for MHCVs while LCVs remained flat YoY. Tractor volumes declined 11% YoY.
“September auto sales came with a mixed bag, where cars and SUVs hit an all-time high on festive fervour and continued to surge in demand as the largest players heavily stocked up their dealerships ahead of Navratri and Diwali. The PV industry is set to hit the milestone of 4 million units for the full year, surpassing the 3.8 million units achieved last year," said Saji John, Senior Research analyst at Geojit Financial Services.
However, the two-wheeler industry continues to see lukewarm growth, though Hero Motor, TVS, and Royal Enfield hope that demand will start picking up as the weeks pass, he added.
“On the other hand, robust infrastructure push, better replacement demand, and growth in the e-commerce segment continue to benefit the commercial vehicle industry. We expect normal volume growth for the sector and some consolidation in the near term due to a significant rally compared to the broader market," said John.
Among stocks, Eicher Motors share price witnessed a sharp drop after the company’s motorcycle sales declined in September.
The company’s Royal Enfield motorcycle sales fell 4% YoY in the domestic market, while exports plunged 49% YoY.
The company’s total commercial vehicle sales increased 8.6% YoY last month.
The largest passenger car manufacturer in the country, Maruti Suzuki’s total wholesales last month increased marginally 2.8% YoY to 181,343 units.
Tata Motors reported a 2% rise in its total domestic vehicle sales at 82,023 units in September. Its passenger vehicle sales in the domestic market, including electric vehicles, were down 6% YoY at 44,809 units.
Hero MotoCorp reported total sales of 5,36,499 units last month, registering a YoY growth of 3%, while Bajaj Auto reported a 1% YoY decline in its total sales at 3,92,558 units in September 2023.
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