Auto sector on top gear, fueled by strong sales

Automobile sector has outshined this fiscal owing to strong sales figures. The quarterly figures were encouraging and provided much needed base level data to give a push to stock prices. Last quarter of FY17 has seen 3 million units of sales, reaching another milestone. Passenger vehicles, utility vehicles and commercial vehicles have seen significant jump in sales over the previous year as reported by manufacturers.

Maruti Suzuki retained market share in passenger vehicle segments by posting 10 per cent yoy increase in overall sales. The PV segment grew 6 per cent in March and 2 per cent yoy driven by new launches. UV segment saw highest increase in sales in FY17 of 31 per cent in March and 107 percent yoy. Exports also strongly aided growth, by posting 13 per cent yoy increase.

Mahindra & Mahindra Ltd., grew by 8 per cent yoy, which was aided by domestic tractor sales that grew 29 per cent yoy and exports also surged 84 per cent. While PV and UV segments didn’t witness any rise in sales in yoy period.

Tata Motors also posted strong sales figures growing 6 per cent yoy, strongly driven by PV segment, which grew 22 per cent yoy at 153,151 units, followed by 1 per cent yoy rise in commercial vehicle segment.

Eicher Motors and SML Isuzu also posted 12 per cent and 19 per cent growth respectively in FY17, further adding to overall automobile sector growth. On the contrary, Bajaj Auto posted negative growth of 6 per cent in total sales.

In the backdrop of sales numbers, BSE Auto Index is up 84 points, partially contributed to by Tata Motors, Maruti Suzuki and M&M.