Auto cos see sales accelerating in Nov, stocks rally

30499 Investors following Hero Motocorp. Share this News with them.

0

Like this story, share it with millions of investors on M3

Auto cos see sales accelerating in Nov, stocks rally

India's largest two-wheeler maker, Hero Honda reported 31.49% growth in its November sales at 3.8 lakh units as against 2.89 lakh units in the same period last year.

Post your opinion here

 

0

Tweet

Share on Tumblr

Excerpts from Bazaar on CNBC-TV18 Watch the full show » RELATED NEWS Hero Honda posts best ever Nov monthly sales ALSO READ See latest News about Hero Motocorp See previous management interviews See what other Experts & Brokerages are saying about Hero Motocorp Hero Motocorp BSE | NSE 29/05/12 Are Mutual Funds betting on Hero Motocorp? Other Stocks in this news TVS Motor Company |

Auto companies have posted a mixed set of November numbers. Sales were expected to be muted due to the auto stir in Haryana-Manesar and end of festive demand. 

Maruti Suzuki , from the four-wheeler pack, has posted its highest ever monthly sales in November. Sales are up 2.8% to 87,807 units in November as against 85,415 units in the previous month. Exports declined 17.43% to 11,448 units versus 13,864 units on a month-on-month basis (MoM).

Mahindra & Mahindra's November total sales (ex-tractors) stood at 22,587 units. Tractor sales went down 32.9% to 12,592 units versus 18,772 units (MoM). Utility vehicle sales increased 102% to 15,193 units versus 7,523 units (YoY).

Hyundai Motor India, the country's second largest car manufacturer and the largest passenger car exporter, has also recorded its highest ever sales. Domestic sales surge by 92.8% to 28,162 units. It posted a 28.5% growth in total sales to 55,265 units from 43,802 units last month.

India's largest two-wheeler maker, Hero Honda reported 31.49% growth in its November sales at 3.8 lakh units as against 2.89 lakh units in the same period last year and 7.34% jump as against 3.54 lakh units month-on-month. Commenting on the numbers, Anil Dua, Senior Vice-President, Hero Honda, says it is the best November monthly sales ever posted by the company. "Buoyancy in demand continues even after the festive season. There was an over 40% growth in the scooter segment."

However, TVS Motors' sales slipped 8.4% to 1.2 lakh units as compared to 1.31 lakh units month-on-month. Year-on-year, it posted a 22.45% rise as against 0.98 lakh units.

How have auto stocks performed?

Auto stocks rallied post these numbers. The Tata Motors stock touched its 52-week high of Rs 704. At 15:31 pm, it is currently trading at Rs 701.50, up Rs 40.60, or 6.14%. Mahindra & Mahindra was up Rs 44.75, or 4.35%, at Rs 1,073; while Bajaj Auto was quoting Rs 1,634, up Rs 64.5, or 4.11%. Despite posting phenomenal numbers, Maruti was marginally up Rs 23.3, or 1.49%, at Rs 1,585. It was a similar story with Hero Honda Motors, up Rs 20.1, or 1.17% at Rs 1,741. TVS Motor was quoting at Rs 57.4, up Rs 0.15, or 0.26%.

Will this performance continue?

Dua is confident that Hero Honda will cross the four million mark much ahead of its initial target of FY10-end.