Auto stocks gain despite slowdown

As automakers reported their sales figures for the month of May, the Nifty Auto index increased by 1.87 per cent despite a weak performance by many companies. In general, the sales figures for May was at a 5-month low due to sluggish demand and liquidity crisis faced by NBFCs.

The top performers were two-wheeler and three-wheeler manufacturers Hero MotoCorp and Bajaj Auto, which achieved better-than-expected sales.

Hero MotoCorp reported sales of 6,52,028 units for May 2019 which is a 13.52 per cent increase from April 2019 sales of 5,74,366 units. The stock of Hero MotoCorp closed at Rs. 2,840.25, up by 5.97 per cent.

As for Bajaj Auto, the company recorded total sales of 4,19,235 units of motorcycles and commercial vehicles including domestic sales and exports in May 2019 as compared to 4,07,044 units of sales in May 2018. The stock of Bajaj Auto closed at Rs. 3,034.60, up by 3.72 per cent.

Two and three-wheeler manufacturer, TVS Motor registered sales of 3,07,106 units in May 2019 compared to 3,09,865 units in May 2018. This is a decrease of 0.89 per cent. The stock closed at Rs. 499.90, which is 4.30 per cent higher than its previous close.

Trucks and buses maker Ashok Leyland saw a 4 per cent drop in its total sales with units sold decreasing to 13,172 in May 2019 compared to 13,659 in May 2018. The stock closed at Rs. 91.85, which is 3.38 per cent higher than its previous close.

Maruti Suzuki's sales declined by 22 per cent in May 2019. The company reported total sales of 1,34,641 units in May 2019 as against 1,72,512 units in May 2018. The stock closed at Rs. 7,022.19 per share, up 2.23 per cent on Monday.