Auto Sector- Making Higher Highs

Owing to the strong sales figures in July Stocks of some automobile companies reached new high on Monday. As per the market analysts this is a result of a good monsoon, higher pay for government employees backed with the approaching festive season and fuel price cuts in the month of June.
Though some manufacturers are yet to come up with the numbers, the industry executives and experts estimate the sales to have grown 8 to 10 per cent last month. This demand was driven primarily by utility vehicles and newer models such as Maruti Suzuki Baleno and Vitara Brezza, Hyundai Creta, Toyota Innova Crysta, Mahindra KUV100 and Renault Kwid. Car sales still remained on the slow lane.

July Auto Sales Figures:

Tata Motors: 

• Total Sales of the Company was up 7 per cent at 43,160 Units as compared 40,154 Units YoY basis.
• Domestic Sales grew by 8 per cent at 37,789 Units YoY basis.
• Domestic Passenger Vehicle Sales climbed up around 31 per cent and reached 10,335 Units YoY basis.
• Domestic Commercial Vehicle Sales down 2 per cent At 24,242 Units YoY basis.
• Exports Up 6 percent At 5,371 Units Vs 5,078 Units YoY basis.

Tata Motors share price is currently trading at Rs 494.75, down by 2.66 per cent.

TVS Motor:

• Total Sales Up 14 percent At 2.48 Lakh Units Vs 2.18 Lakh Units (YoY)
• Total Exports Down 5.8 percent At 40,192 Units Vs 42,677 Units (YoY)
• Two-wheeler Sales Up 15.4 percent At 2.4 Lakh Units Vs 2.08 Lakh Units (YoY)
• TVS Motors share price is currently trading at Rs 299.70, up by 1.59 per cent.

Maruti Suzuki:

• Hikes Price Of Select Models Ranging From Rs 1,500 to Rs 5,000
• Hikes Price Of Vitara Brezza By Up To Rs 20,000
• Hikes Price Of Baleno By Up To Rs 10,000
• Maruti share price made a new 52 week high of Rs 5,039.00 and is currently trading at Rs 5,000.30.

Hero MotoCorp:
Total Sales were up by 9.13 per cent at 5.32 Lakh Units Vs 4.87 Lakh Units YoY basis.
Hero share price is currently trading at Rs 3,259.90, up by 1.40 per cent.
According to a recent report by Ind-Ra on the refinancing risks among the top 500 corporate borrowers of India, auto and component sector recorded a much higher proportion of well-managed borrowers compared to more leveraged sectors such as metal & mining, power, infrastructure, telecom along with oil and gas.