Auto stocks skid amid weak sales in January

Shares of seven auto companies fell 0.42% to 4.74% after SIAM January data confirmed the persistence of weakness in the automobile sector.

The Nifty Auto index fell 1.67% to 7,930.20 while the benchmark Nifty index was down 0.77%.

Mahindra & Mahindra (down 4.74%), Tata Motors (down 2.39%), Eicher Motors (down 2.21%), TVS Motor Company (down 1.51%), Maruti Suzuki India (down 0.94%), Hero MotoCorp (down 0.72%), Bajaj Auto (down 0.45%), Ashok Leyland (down 0.42%) declined. Escorts was up 0.1%.

The Society of Indian Automobile Manufacturers (SIAM) announced the automobile sales figures for the month of January 2020. Vehicle sales across categories registered a decline of 13.83% to 17,39,975 units from 20,19,253 units in January 2019.

Domestic passenger vehicle sales declined 6.2% to 2,62,714 units in January from 2,80,091 units in the year-ago month.

Motorcycle also declined by 15.17% to 8,71,886 units in January 2020 from 10,27,766 units a year earlier.

Total two-wheeler sales in January fell 16.06% to 13,41,005 units as compared to 15,97,528 units in the same month last year.

Sales of commercial vehicles were down 14.04% to 75,289 units in January 2020 over January 2019.

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