Here’s why auto stocks Tata Motors, Maruti Suzuki, and M&M will be highlighted on Monday.
While Hyundai and Tata Motors reported decreases in passenger vehicle sales,Maruti Suzuki recorded a modest uptick.Sales of Mahindra’s utility vehicles increased.The economic slowdown and foreign capital outflows are putting pressure on auto companies; in February,the Nifty Auto index fell by about 11%.
On Monday, March 3, investors are anticipated to be paying close attention to auto companies including Maruti Suzuki, Mahindra & Mahindra, Tata Motors, and Bajaj Auto as they respond to their February sales data.
Due to strong foreign capital outflows, a declining value of the currency, and indications of slowing economic development, auto stocks have recently been under a lot of pressure, with a steep selloff across all segments.
In February, the Nifty Auto index fell by almost 11%, while the Nifty 50 stock benchmark saw a fall of roughly 6%.
In the past month, stocks of Hero MotoCorp, Mahindra and Mahindra (M&M), Bajaj Auto, TVS Motor, Tata Motors, and Eicher Motors have plummeted by 11–16%.
The Auto index has fallen 26% from its record of 27,696 while the Nifty 50 has down 16% from its peak.
Car sales data for February :
The amount of automobile sales is one of the main market triggers. In addition to reflecting each company’s performance, the sales volumes of major automakers provide insight on customer views and the status of the economy.
Last month, Maruti Suzuki India (MSI) sold 1,60,791 domestic passenger cars, a slight increase over the 1,60,271 it sold in the same month the year before, the company said on Saturday.
Hyundai Motor India sold 47,727 cars to Indian dealers this month,which is 5% less than the 50,201 cars it sold in February 2024.
Domestic sales of passenger automobiles (PVs), including electric vehicles,fell 9% to 46,435 units from 51,267 units the year before, according to Tata Motors.
On the other hand, Mahindra & Mahindra (M&M) said that sales of its domestic utility vehicles increased by 19% to 50,420 units from 42,401 units sold in February of the previous year.
In February, Ola Electric Technologies Ltd.’s monthly registrations dropped to a level that had not been seen in almost three years. Nonetheless, the business maintained its position as the market leader, surpassing both Bajaj Auto Ltd. and TVS Motor Co. Ltd.
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