Shares of Samvardhana Motherson International and Sona BLW Precision Forgings (Sona Comstar) traded higher on Thursday after robust growth in European automobile sales strengthened investor confidence in companies with significant exposure to the region. 

The recovery in Europe’s passenger vehicle market is expected to support demand for automotive components, benefiting leading Indian auto ancillary manufacturers.

According to the European Automobile Manufacturers’ Association (ACEA), new passenger car registrations across Europe climbed 13% year-on-year to 1.41 million units in June, marking the fastest annual growth since October 2023. 

Battery electric vehicle (BEV) sales surged 51% during the month, while plug-in vehicles accounted for more than one-third of total registrations. The strong demand indicates improving consumer sentiment despite persistent cost pressures and intensifying competition from Chinese automakers.

Samvardhana Motherson generates over one-third of its consolidated revenue from Europe, making the region one of its largest growth drivers. 

The upbeat sales data therefore lifted market sentiment around the company. Over the past six months, the company has continued expanding its global footprint through multiple regulatory filings, including updates on strategic acquisitions, subsidiary restructuring, and investor communications aimed at strengthening its international automotive business.

Sona Comstar also remained in focus after announcing definitive agreements with Japan’s DENSO Corporation to establish two joint ventures in India. 

The partnership will design, develop, manufacture, and market electric and hybrid powertrain systems for passenger vehicles, commercial vehicles, two-wheelers, three-wheelers, and other mobility applications. The collaboration aligns with the industry’s accelerating transition toward electrification and is expected to enhance Sona Comstar’s presence in advanced mobility technologies.

At 3:30 pm, Samvardhana Motherson International shares closed 1.71% higher at Rs 146 on the NSE.

Ready to invest like a pro? Tradz by EquityPandit app equips you with 100+ Free tools and knowledge you need to succeed. Download the Tradz by EquityPandit app and gain access to daily stock lists and insightful market analysis and much more!