Auto stocks were trading lower despite Federation of Automobile Dealers Associations (FADA) report showed that passenger vehicle (PV) retail sales dropped by 20.1 percent to 1,57,972 units in September 2019 as compared with 1,97,653 units in the corresponding month last year, as the onset of festival season and never-seen-before discounts failed to boost demand.
Maruti Suzuki India is currently trading at Rs. 7373.80, up by 55.65 points or 0.76% from its previous closing of Rs. 7318.15 on the BSE. The scrip opened at Rs. 7300.00 and has touched a high and low of Rs. 7391.45 and Rs. 7274.50 respectively. So far 24162 shares were traded on the counter.
Mahindra & Mahindra is currently trading at Rs. 595.35, up by 2.55 points or 0.43% from its previous closing of Rs. 592.80 on the BSE. The scrip opened at Rs. 595.00 and has touched a high and low of Rs. 600.00 and Rs. 587.10 respectively. So far 45572 shares were traded on the counter.
Bajaj Auto is currently trading at Rs. 3134.95, up by 47.20 points or 1.53% from its previous closing of Rs. 3087.75 on the BSE. The scrip opened at Rs. 3081.10 and has touched a high and low of Rs. 3138.80 and Rs. 3081.10 respectively. So far 3858 shares were traded on the counter.
In the two-wheeler segment, the retail sales declined by 12.1 percent to 10,98,271 units in September as compared with 12,48,998 units in the year-ago period. Commercial vehicle sales dropped by 18.5 percent to 63,518 units against 77,980 units in September last year.
According to the FADA, three-wheeler sales saw a rise of 1.8 percent to 55,553 units in September 2019 from 54,560 units in the same period in the previous year. Total sales across categories declined by 12.9 percent to 13,75,314 units in September as against 15,79,191 units in the same month last year. It has stated that retail sales were under pressure during the month and the de-growth was on expected lines. It also said the continued heavy rains in various regions and the shraddh period also contributed to this sales lag. It added that the complete effect of the positive measures announced by the government was still not visible at the retail levels in the month of September.
Automobile dealers’ body further stated that high inventory levels which started with festive season last year still continue to be a problematic area. While commercial vehicles showed slight reduction in inventory levels, it said passenger vehicle segment witnessed an increase as companies pushed in higher number of units anticipating higher sales during the festive season.