Shares of domestic auto majors such as Hero MotoCorp, TVS Motor and Tata Motors were trading higher on Friday after they reported sales figures for the month of August 2016. Two-wheeler major Hero MotoCorp on Thursday posted a 28 per cent jump in sales at 6,16,424 units in August. It had sold 4,80,537 units in August 2015. Total sales of TVS Motor Company grew by 30.1 per cent to 2,38,984 units against 1,83,653 units in August 2015. Carmaker Maruti Suzuki India on Thursday (MSI) launched its first light commercial vehicle (LCV) Super Carry in the country priced at Rs 4.03 lakh (ex-showroom, Ahmedabad). The company said its domestic sales in August rose 12.3 per cent to 1,19,931 units, from 1,06,781 units in August 2015.
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At 12.27 pm, shares of Maruti Suzuki, TVS Motor and Hero MotoCorp were trading up by 2.06 per cent, 1.79 per cent and 0.69 per cent, respectively. Nifty Auto index was trading 1.12 per cent up at 10051 at the same time. On the other hand, Ashok Leyland and Bajaj Auto were trading down by 1.07 per cent and 0.10 per cent at the same time.
Bajaj Auto on Friday registered a 5 per cent decline in its total sales at 3,25,347 units in August as against 3,41,965 in the same month a year ago.
On the auto sector, Vaibhav Agrawal, VP and head of research, Angel Broking said, “The auto industry has continued on its recovery path this year and are expected to improve further on success of new products, a normal monsoon and implementation of the 7th Pay Commission. However, M&HCV volumes remained affected due to lower freight rates and heavy rains in some states. Nevertheless, pick up in infrastructure activities and replacement demand should revive volumes in the CV space, although moderately, going ahead.”