Shares of Automobile companies were in focus on Tuesday after they announced their April sales numbers. Tata Motors and Hero MotoCorp disappointed Dalal Streer investors. On the other hand, Maruti Suzuki, TVS Motor and Eicher Motor reported healthy growth in sales.
Maruti Suzuki India saw a 7% volume growth, with shares rising 2%. Tata Motors saw a 4% decline in total sales and a 1% decline in share value, while Hero MotoCorp saw a 5% fall in April sales, and its shares fell almost 3%. Eicher Motors reported an 18% YoY jump in volumes, while TVS Motor said its sales grew 4%, with shares rising nearly 1% and 2%, respectively.
India’s largest carmaker Maruti Suzuki announced a good sales growth of 6.5% in passenger vehicles to 1,60,529 units in April compared to 1,50,661 units during the same period last year. Total domestic sales for the carmaker were 1,39,519, OEM sales were 4,039, and total exports were 16,971. Maruti Suzuki stated that despite its best efforts to lessen the effects, it has been experiencing an electronic component scarcity.
Shares of Maruti Suzuki gained 2.04% or Rs 175.65 and closed at Rs 8,765.20.
Tata Motors reported that total domestic sales fell 4% to 68,514 units in April, compared with 71,467 units a year earlier. The automaker’s total commercial vehicle sales also fell 27% to 22,492 in April from 30,838 last year.
Separately, Tata Motors raised the prices of its passenger cars by 0.6%, depending on the model and variant.
Following the weak sales, shares of Tata Motors fell more than 2% on Tuesday. The shares closed 0.94% lower at Rs 480.40.
The world’s largest two-wheeler manufacturer, Hero MotoCorp, sold 3,96,107 units in April against 4,18,622 units, down 5% YoY. Its exports slumped over 50% to 9,923 units from 20,132 units last year.
The company expects momentum to pick up in the coming months due to many factors, including a slew of new product launches, healthy growth in the country’s GDP and positive consumer sentiment.
Shares of Hero MotoCorp were down 2.46% at the time of closing and were last traded at Rs 2,495.75 apiece.
Eicher Motors reported an 18% on-year jump in Royal Enfield motorcycles sales volumes at 73,136 units against 62,155 units last year. Meanwhile, the company’s international business declined 49% to 4,255 units that were exported in April 2023 as against 8,303 units in April 2022.
Models with engines up to 350cc saw a 26% increase in sales, from 51,564 units in April 2022 to 64,728 units in April 2023. While this was happening, sales of models with engines larger than 350cc fell 21% to 8,408 units sold compared to 10,591 units during the same period last year.
As a result, the automaker’s shares rose 1.27% to close at Rs 3,343 per share.
TVS Motor Company reported a 4% increase in sales from 2,95,308 units in the same month last year to 3,06,224 units in April 2023. Motorcycle volumes rose 10% to 1,52,365 units from 1,39,027 units. Scooter sales rose 5% to 1,07,496 units from 1,02,209 units. Overall, TVS’ two-wheeler segment delivered a sales growth of 5% to 2,94,786 units from 280,022 units during the same period last year. Its electric vehicle, the iQube, reached a sales milestone of 1 lakh units.
Reacting to the April sales numbers, shares of TVS rose 1.9% and closed at Rs 1,160 per share.