Ashok Leyland zoomed 8.22 per cent, TVS Motor Company gained 7.54 per cent, Maruti Suzuki India 3.45 per cent, Mahindra & Mahindra 2.67 per cent and Bajaj Auto 2.11 per cent. The BSE auto index gained 3.95 per cent to close at 23,968.61.
Auto stocks continued to gain for the second consecutive day, rising up to 15 per cent on Tuesday, as investors cheered sales growth numbers and also the announcement of voluntary vehicle scrapping policy. Shares of Tata Motors jumped 15.21 per cent to close at Rs 322.30 on the BSE. During the day, it zoomed 18.82 per cent to its one-year high of Rs 332.40.
Auto stocks had jumped up to 10.5 per cent on Monday also. Reflecting a seemingly sustainable market recovery amid concerns of oversupply of certain parts, auto majors Maruti Suzuki, Hyundai Motor, M&M, Tata Motors, Honda and MG Motor on Monday reported growth in their domestic passenger vehicle sales in January.
The country’s largest carmaker Maruti Suzuki India (MSI) reported a 2.6 per cent rise in domestic sales to 1,48,307 units last month as against 1,44,499 units in January 2020.
Homegrown auto major Tata Motors said its passenger vehicle sales in the domestic market in January stood at 26,978 units as against 13,894 units in the same month previous year, up 94 per cent.
Utility vehicles major Mahindra & Mahindra’s domestic passenger vehicle sales were up 4 per cent to 20,634 units last month as compared to 19,797 units in January 2020.
Bajaj Auto Ltd on Tuesday reported an 8 per cent increase in total sales at 4,25,199 units in January. Meanwhile, Finance Minister Nirmala Sitharaman on Monday announced the much-awaited voluntary vehicle scrapping policy to phase out old and polluting vehicles.
“Automobile sector will have much to cheer from the union government’s decision to introduce a voluntary vehicle scrapping policy,” said Vishal Wagh, Research Head, Bonanza Portfolio on Budget 2021.