Auto index at 2 1/2-mth low as May sales hit 20-mth low

The Bombay Stock Exchange (BSE) auto index is down 1% at 8,598, hitting a two-and-half month low, after domestic auto sales grew at their slowest pace in twenty months in May, 2011.

The BSE auto index has fallen almost 10% compared with a 4% decline in the benchmark index Sensex since May.

Sales rose 10.6% in the past month to 1.37 million units from 1.23 million units a year earlier, according to data released by the Society of Indian Automobile Manufacturers (SIAM). This is the lowest percentage gain since September 2009, when the rise was 9.6%.

“The domestic sales growth rate recorded for April-May 2011 was 16.34%. However, the month of May 2011 registered a lower growth rate of 13.40% compared to May 2010. Overall automobile exports registered a lower growth of 30.49% in May 2011 compared to May 201,” SIAM said in a press release.

Among individual auto stocks, Maruti Suzuki, Hero Honda Motors, Ashok Leyland and Tata Motors are trading lower by 1-2% on the BSE.