India’s Auto Stocks Rise on Strong October Sales
Indian automobile stocks rose on Monday following strong October sales figures, signalling resilient consumer demand during the festive season. The Nifty Auto index gained 1.22% to reach 25,733.6 points. Maruti Suzuki shares climbed 2.58%, while Ashok Leyland gained 2.13%, Tata Motors Passenger Vehicles rose 1.87%, and TVS Motor advanced 1.37%.
Major automakers reported significant sales growth in October. TVS Motor recorded a 29% increase, while Maruti Suzuki achieved a record monthly sales figure of 276,120 vehicles, marking a 25% rise. Tata Motors reported 27% growth in commercial vehicle sales, while Ashok Leyland registered a 23% increase. Analysts noted that two-wheeler and commercial vehicle manufacturers were showing stronger performance.
However, experts cautioned that rising input costs and supply constraints could affect growth after the festive season. The shift of Diwali celebrations to November this year also influenced year-on-year retail comparisons. Meanwhile, Mahindra & Mahindra reported a 12% decline in total tractor and vehicle sales, highlighting continued weakness in the tractor segment.
Pic courtesy: google/ images are subject to copyright
