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Auto stocks climb after SIAM data

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Shares of nine auto companies rose by 0.22% to 2.83% after the data released by the Society of Indian Automobile Manufacturers (SIAM), an industry body, indicated a recovering trend for the industry.

The Nifty Auto index was trading 0.44% higher at 7,979.70, extending its winning run to third consecutive session.

JBM Auto (up 2.83%), Atul Auto (up 1.85%), Ashok Leyland (up 1.62%), SML Isuzu (up 1.46%), Hero MotoCorp (up 1.47%), Tata Motors (up 1.47%), TVS Motor (up 1.11%), Mahindra & Mahindra (up 0.41%) and Bajaj Auto (up 0.22%) advanced.

A total of 21,62,367 units, including passenger vehicles, three-wheelers, two-wheelers & quadricycle were produced in August 2020, as against 22,31,355 in August 2019, witnessing a decline of 3.09%.

Passenger vehicle sales in India increased by 14.16% in August to 2,15,916 units as against 1,89,129 units in the same month last year, auto industry body SIAM said on Friday.

Two-wheeler sales also rose 3% at 15,59,665 units, as compared to 15,14,196 units in the same month last year.

Motorcycle sales were at 10,32,476 units as against 9,37,486 units in August 2019, up 10.13%. Scooter sales were, however, down 12.3% at 4,56,848 units as against 5,20,898 units in the same month last year.

Three-wheelers saw a dip in sales by 75.29% in August 2020 over August 2019. Sales of utility vehicles increased by 15.54% in August 2020 over August 2019.

Total exports of passenger vehicles, three-wheelers and two-wheelers witnessed a decrease of 45.17%, 13.61% and 14.23% respectively in August 2020 over August 2019.

Kenichi Ayukawa, PresIdent, SIAM said, "We are beginning to observe growth which is instilling confidence back into the industry, especially in the two-wheeler and the passenger vehicle segments. Even though the industry witnessed year-on-year growth in August 2020, it is to be recognized that the base figures in August 2019 itself was very low, as industry had shown a de-growth of about (-)32% for passenger vehicles and (-)22% for 2 wheelers in 2019, over 2018, then. Still, 14% growth of passenger vehicles and 3% growth in two wheelers in August 2020 indicates trends of recovery for the industry, though it is on the backdrop of pent-up demand and beginning of a festive season this month."

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Fri, September 11 2020. 12:44 IST