Nifty Auto accelerates despite week sales data

Source: dsij.in

Auto stocks were buzzing on Monday even as major automakers continued to their bumpy ride and reported weak sales numbers for the month of June 2019.

Maruti Suzuki, the leader in passenger car space, posted a decline of 14 per cent in total sales in the month of June. It sold total of 1,24,708 units in June 2019 which includes 1,14,861 units in the domestic market and 9,847 units of exports. It has registered a de-growth of 17.2 per cent YoY in sales of Domestic Passenger Vehicles. However, exports sales grew by 5.7 per cent YoY.

Ashok Leyland, which offers a range of trucks and heavy vehicles, posted poor numbers for the month of June. The total number of vehicles sold in June 2019 was 12,810, showing 19 per cent YoY decline. Domestic sales declined by 14 per cent with sales of 12,085 vehicles in June 2019. Total sales of M&HCV and LCV declined by 25 per cent and 3 per cent YoY, respectively.

Bajaj Auto posted muted set of numbers with total number of units sold at 40,4624 in June. Sale of motorcycles jumped by 4 per cent YoY, whereas CV sales declined by 20 per cent YoY.

Eicher Motors, which produces the iconic bike Royal Enfield and also caters to commercial vehicle segment, posted negative numbers with a decline in total sales in June 2019 by 28.5 per cent YoY. Trucks and Buses sales declined by 28.7 per cent YoY.

However, despite weak auto sales numbers, the NIFTY auto index was up by nearly 1.4 per cent or 108.4 points from its previous close. The stock of Bajaj Auto and Eicher Motors were up by more than 2 per cent. While Ashok Leyland and Maruti were trading at a flat note.