Auto Shares Subdued Despite Jump In October Sales

Auto shares are trading subdued in a listless market although some of India's largest auto companies reported rise in passenger vehicle sales for the third straight month, in October, buoyed by heightened demand during Navratri and Dussehra festivals, and recovery in economic activity following easing of lockdown curbs. At 11:30 am, Maruti Suzuki was trading lower by 0.6 per cent at Rs 6,909.75 and Bajaj Auto had shed 1.7 per cent at Rs 2,835 on the BSE. On the other hand, M&M was virtually unchanged at Rs 594.

Maruti Suzuki on Sunday reported rise of 19.8 per cent in total domestic sales to 172,862 units in October, as against 144,277 units in the corresponding period last year. It posted total sales of 182,448 units in October 2020, which is a growth of 18.9 per cent over the same period of the previous year.

Mahindra & Mahindra, maker of popular sports utility vehicles, reported a 1 per cent increase in domestic sales of passenger vehicles in October, compared to last year. Passenger vehicle sales in the domestic market stood at 18,622 units in October, compared to 18,460 units in the same month last year.

Bajaj Auto said that its domestic sales stood at 281,160 units in October 2020, as against 278,776 units in October last year, up 1 per cent. It reported a 11 per cent increase in total vehicle sales at 512,038 units in October. The company had sold a total of 463,208 units in the same month last year.

The BSE Sensex was at 39,616.80, higher by two points and the NSE Nifty was at 11,636.10, down six points at the time.