Tata Motors, Maruti gain after November car sales data; TVS Motor skids

Maruti Suzuki, India’s largest carmaker, and Tata Motors jumped on Wednesday after reporting sales data for November while shares of TVS Motor fell as it sold fewer bikes than a year earlier.

The BSE Auto index — a gauge of top automobile and auto ancillary manufacturers — climbed 1.47% to close at 24,342.59. The index outpaced the benchmark Sensex, which rose 1.1%.

Maruti, which sells almost half the cars in India, ended 2.66% higher at Rs 7,274.75 apiece while Tata Motors gained 3.6% to close at Rs 475.35 apiece.

Tata Motors’ domestic and international sales for November 2021 stood at 62,192 vehicles, up from 49,650 units during November 2020. Local passenger vehicle sales jumped 38% thanks to its compact SUVs Punch and Nexon. Sales of medium-to-heavy commercial vehicles including trucks, buses and international business rose to 9,505 units from 6,340 units last year.

On the other hand, Maruti posted total sales of 139,184 units in November 2021, down from 153,223 units a year earlier. This included domestic sales of 113,017 units and its highest ever monthly exports of 21,393 units.

Maruti said the shortage of electronic components had a minor impact on the production of vehicles during the month. The shortage primarily affected the production of vehicles sold in domestic market, it said.

Shares of Eicher Motors, which makes Royal Enfield motorcycles and commercial vehicles, advanced nearly 3% in intraday trading after the company reported a year-on-year jump of 10.1% in commercial vehicle sales. However, the shares reversed the gains to end 0.09% down, possibly dragged down by a 30% drop in tractor sales.

Shares of Bajaj Auto reversed intraday losses to advance 0.2% even as the two-wheeler company reported a 10% drop in November sales. Total auto sales stood at 379,276 units compared with 422,240 units in November 2020. On a sequential basis, the total auto sales skid 13.72% from 439,615 units sold in October 2021.

TVS Motor declined 1.33% after reporting a 15% drop in total sales at 272,693 units for November 2021. The company had sold 322,709 units in the same month last year.

Automobile sales have been hurt lately as record high fuel prices and supply-side constraints of electronic components due to the global semiconductor shortage have caused production delays. 

“Initial trends suggest a relatively muted start to the marriage season, which should further impact dispatches. Tractors are expected to witness a decline on a y-o-y basis due to a high base. However, rural sentiments are relatively strong, which should augur well for the industry in the coming months,” said Mohit Gupta, analyst at securities broking firm Nirmal Bang.

“While festivals were a tad disappointing due to chip shortages, we see scope for regaining lost volume during the leaner months post festivals, led by strong demand and improving supply chain dynamics,” Gupta added.