Auto shares tumble

Bajaj Auto (down 3.23%), Maruti Suzuki India (down 2.98%), Hero MotoCorp (down 2.56%), Ashok Leyland (down 1.9%), Tata Motors (down 1.52%) and Eicher Motors (down 0.75%), edged lower.

However, Mahindra & Mahindra (up 0.33%) and TVS Motor Company (up 0.14), edged higher.

The S&P BSE Auto was down 1.38% at 11,011.86. It underperformed the S&P BSE Sensex, which was down 0.27% at 19,706.52.

Bajaj Auto reported 4% fall in total sales to 3.39 lakh units in May 2013 over May 2012. The company's motorcycle sales declined 5% to 3.04 lakh units in May 2013 over May 2012. Exports fell 14% to 1.11 lakh units in May 2013 over May 2012.

Maruti Suzuki India reported 14.4% fall in total sales to 84,677 units in May 2013 over May 2012. The company's domestic sales declined 13% to 77,821 units in May 2013 over May 2012. Exports fell 27.1% to 6,856 units in May 2013 over May 2012.

Mahindra & Mahindra (M&M) said its total sales declined 1% at 43,460 units in May 2013 over May 2012. Auto sales in the domestic market rose 5% to 42,104 units in May 2013 over May 2012. The passenger vehicles segment which includes the UVs and Verito registered a growth of 5% at 22,244 units in May 2013 over May 2012. The four-wheeler commercial segment which includes the passenger and load vehicles registered a 12% growth at 14,848 units while the three-wheeler segment witnessed a 7% decline in sales at 4,028 units in May 2013 over May 2012. Exports declined sharply by 67% at 1,356 units in May 2013 over May 2012.

Tata Motors' total sales (including exports) of Tata commercial and passenger vehicles declined 23.37% to 49,304 vehicles in May 2013 over May 2012. The company's domestic sales of Tata commercial and passenger vehicles declined 24.44% to 45,430 units in May 2013 over May 2012. Exports declined 8.17% to 3,874 units in May 2013 over May 2012.

Ashok Leyland's total sales declined 16% to 7,267 units in May 2013 over May 2012.

Meanwhile, public sector oil marketing companies (PSU OMCs) hiked retail selling prices of petrol by Rs 0.75 per litre and increased retail selling price of diesel by Rs 0.50 per litre with effect from Saturday, 1 June 2013. The current increase was mainly due to depreciation of rupee from Rs 54.26 to Rs 55.32 against the dollar. Investors fear that that the hike in fuel prices may further dampen vehicle sales.

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