Tata Motors, M&M To TVS Motors: Nifty Auto Gives Up Gains After Rising Nearly 2%

The Nifty Auto snapped a two-day losing streak and rose nearly 2% on Monday, buoyed by the release of monthly sales data over the weekend. However, it fell nearly 0.39% after, as the markets erased gains.

Despite posting its worst performance in six months on Friday, the index gained traction on Monday, led by strong performances from Mahindra & Mahindra Ltd., Eicher Motors Ltd., and TVS Motors Co. However, companies like Exide Ltd., Tata Motors Ltd., and Bajaj Auto Ltd. saw declines.

TVS Motors stood out, with a rise of over 4.62%, while Mahindra & Mahindra and Ashok Leyland Ltd. saw gains of 4.29% and 3.12%, respectively. Apollo Tyre Ltd. and Eicher Motors also rose nearly 3%.

Companies like Bajaj Auto, Bharat Forge Ltd., Bosch, and Samvardhana Motherson saw moderate gains of over 1%, while Maruti Suzuki India Ltd., Hero MotoCorp Ltd., MRF, and Tata Motors remained relatively flat.

Auto Monthly Numbers

Mahindra & Mahindra posted a 15% year-on-year increase in total auto sales, reaching 83,702 units in February. The company's utility vehicle sales rose 19%, while tractor sales grew 17.8%.

Maruti Suzuki reported a modest rise of 1% in total sales, with domestic passenger vehicle sales remaining nearly unchanged. In contrast, Tata Motors saw an 8% year-on-year decline in sales, reporting 79,344 units sold.

Among two-wheeler manufacturers, Eicher Motors, known for Royal Enfield, posted a 19% rise in sales, reaching 90,670 units.

Morgan Stanley On Auto Sales

Retail sales trends remained weak throughout the month, with passenger vehicles and two-wheelers experiencing year-on-year declines of approximately 6-9%, Morgan Stanley said.

In terms of wholesales, Eicher, TVS, and M&M continued to outperform, while Maruti and Hero Moto met expectations, and Tata underperformed, the brokerage said in its note on Monday.

Electric passenger vehicle penetration improved by 50 basis points month-on-month, reaching 2.9%. Additionally, Tata's market share in electric PVs dropped by 3% month-on-month to 42%, while MG's share decreased by 2% to 36%.