New Delhi, India
October 3, 2023
Maruti Suzuki, Hero Moto, Eicher Motors, tumble; Nifty Auto down 1%.
In September, the Indian auto industry witnessed a diverse range of performance indicators as the country’s automakers reported their monthly sales figures. Here’s a breakdown of the key highlights from the September auto sales data:
Passenger Vehicles Show Retail Growth:
The passenger vehicle segment saw robust retail growth, driven in part by the shifting dates of the Shraddha period, considered inauspicious. This shift resulted in stronger year-on-year sales. Maruti Suzuki, the largest passenger car manufacturer in the country, reported sales of approximately 181,300 units, marking a 3% increase.
Two-Wheelers Steady:
The two-wheeler segment displayed a relatively steady performance, with Hero MotoCorp, TVS Motor, and Eicher Motors recording modest growth in wholesales (2%, 6%, and 1%, respectively). Retail sales for these companies showed even more promising numbers, with year-on-year growth ranging from 8% to 31%.
Tractor Segment Faces Challenges:
The tractor segment, however, faced headwinds as sales declined by 11% year-on-year. This decline could be attributed to various factors, including changing agricultural dynamics and economic conditions.
Commercial Vehicles Surprise Positively:
A pleasant surprise came from the commercial vehicle segment, which reported a positive growth of 8.6% year-on-year. Mahindra & Mahindra’s utility vehicles (UVs), including pickups, led the charge with a notable 15% YoY growth.
Stock Market Reaction:
In response to these varying sales reports, the stock market exhibited fluctuations. Eicher Motors saw a 4% drop in share price as its September sales figures disappointed investors, while Hero MotoCorp’s 3% sales growth failed to impress the market.
