Automakers face another month of rough ride

The auto players continue to hit rough roads as they reported weak sales numbers for the month of September 2019.

Maruti Suzuki, leader in passenger car space, announced a decline of 24.4 per cent in total sales for the month of September. It sold total 122640 units in September 2019 which includes 115452 units sold in domestic market and 7188 units of exports. It has registered de-growth of 27.1 per cent YoY in sales of Domestic Passenger Vehicles. Also, exports sales de-grew by 17.8 per cent YoY.

Bajaj Auto posted 20 per cent decline in sales in the month of September 2019 with total number of 402035 units sold. Sale of motorcycles declined by 22 per cent YoY whereas CV sales declined by 8 per cent yoy.

Ashok Leyland, which offers a range of trucks and heavy vehicles, also posted poor numbers for the month of September. The total number of vehicles sold in September 2019 was 8780, showing 55 per cent YoY decline. Domestic sales declined by 57 per cent with sales of 7851 vehicles in September 2019. Total sales of M&HCV slipped by 67 per cent YoY and sale of LCV decreased by 21 per cent YoY.

Eicher Motors, which produces iconic bike ‘Royal Enfield’ and also caters to commercial vehicles, posted negative numbers with 43.2 per cent YoY fall in total sales in September 2019. Exports also declined by 41 per cent YoY. However, sales of Volvo Trucks grew by 48 per cent YoY.

Sales numbers will keep influencing the stock movements of the auto makers. On Tuesday, the stock of Maruti Suzuki increased by nearly 2 per cent whereas Ashok Leyland tumbled by nearly 5 per cent.