Auto shares in demand after SIAM data

Shares of eight auto companies edged higher after the Society of Indian Automobile Manufacturers (SIAM), an industry body, announced auto sales figures for October 2020.

The Nifty Auto index was up 1.19% at 8,224.05, extending gains for seventh consecutive session.

Hero MotoCorp (up 3.11%), Eicher Motors (up 2.37%), Tata Motors (up 1.30%), Mahindra & Mahindra (up 1.06%), Maruti Suzuki (up 1.01%), Bajaj Auto (up 0.49%) and TVS Motor Company (up 0.17%) advanced while Ashok Leyland (down 1.26%) declined.

According to the latest data released by SIAM, passenger vehicle wholesale in India increased by 14.19% to 3,10,294 units in October against 2,71,737 units in the same month last year.

While two-wheeler sales increased by 16.88% to 20,53,814 units, sales of three-wheelers saw a dip in sales by 60.91% to 26,187 units in October 2020 over October 2019.

The total production of passenger vehicles, three-wheelers, two-wheelers and quadricycle in the month of October 2020 was 28,30,153 units, as against 20,86,479 units in October 2019, witnessing a growth of 35.64%.

"The month of October saw continuity in sales growth trajectory, drawing on from the previous month. There were marked improvements witnessed across certain segments due to very good festive demand," SIAM Director General Rajesh Menon said.

Three-wheelers saw a slight improvement in sales, compared to the last month, however, it has still registered a de-growth of 60.91%, over the corresponding month of last year, he added.

"October wholesale numbers have been good on account of dealers preparing to serve demand for the upcoming Diwali festival, which is in November this year," Menon said.

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