May auto sales indicate robust demand

May auto sales indicate that the consumer appetite in the country is back on track after facing twin shocks of demonetization and GST implementation in FY18. Maruti Suzuki continued its dominance with strong growth.

In the two-wheeler sector, Bajaj Auto posted 30 per cent jump in May sales to 4,07,044 units. The domestic sales grew by 29 per cent to 2,24,625 units in this May vs 1,74,047 units in the previous year's same month. Post the news, the stock closed 5 per cent up at Rs. 2,893 per share. While Royal Enfield also achieved strong growth at 23 per cent.

In the passenger car segment, Maruti, Ford and Mahindra posted strong growth of 26 per cent,11.42 per cent and 12 per cent in the month of May. The stock of Maruti closed positive on the bourses by gaining 3 per cent during the day. While Mahindra & Mahindra lost 2.3 per cent on Friday.

In the commercial segment, Ashok Leyland and Escorts witnessed 51 per cent and 20.9 per cent growth in sales of May. The stock of Ashok Leyland and Escorts gained 1.69 per cent and 0.38 per cent up during the day.