September car sales up, will it continue? - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

September car sales up, will it continue?

Oct 4, 2000

For the month of September 2000 car sales have reported buoyant growth rates than as compared to the dull performance of the past few months. The main reason behind this is the fact that companies buy cars in September so as to claim depreciation for the rest of the year. They manage to reduce their tax burden for the first half of the year by doing so.

Car Companies Sep-00 Sep-99 % growth
Maruti Udyog 36,959 34,938 5.8%
Daewoo Motors 4,720 3,166 49.1%
Hyundai 8,242 7,214 14.3%
Honda Siel 1,101 1,000 10.1%
This is a trend every year wherein car sales tend to pick up in the month of September, due to the above. Besides this the beginning of the festive season could also have added to the volume growth.

Passenger car sales have been pretty dull over the past few months due to the uniform sales tax across all states resulting in higher prices in certain states as well as overall inventory build up. Infact on year on year basis, car sales actually declined in July and August 2000.

As October is the beginning of the festive season, this upward trend may have continued in the second half as buyers are expected to make fresh purchases. However the recent diesel and petrol hikes would act as a dampener on the automobile segment as a whole and to the car segment as well.

This together with the industrial slowdown could result in a lull in the passenger car segment for the rest of the year. Hence the buoyant car sales in the month of September are not as positive as they seem for the passenger car segment, as car sales do tend to pick up every year in this month due to tax planning by companies.

Equitymaster requests your view! Post a comment on "September car sales up, will it continue?". Click here!


More Views on News

Massive Surge in the Shares of Tata Motors Today. Key Factors Favouring the Rally (Views On News)

Oct 13, 2021

Tata Motors zooms 23% after report of TPG investing Rs 75 bn in EV arm.

India's Edge in Electric Vehicle Stocks podcast (Views On News)

Sep 9, 2021

India has a huge advantage in using climate friendly EV batteries.

Eicher Motors' Earning Meets Estimate. Stock Under Pressure Amid CEO Exit and Chip Shortage (Views On News)

Aug 13, 2021

Robust performance by Royal Enfield in the international market gives a lift to Eicher's topline.

4 Ways to Play the EV Opportunity (Views On News)

Sep 6, 2021

The EV disruption is happening faster than you think. Here's how you can ride the Indian EV megatrend.

Semiconductors Are Big News. Here's What You Should Know... (Views On News)

Jul 27, 2021

The global semiconductor chip shortage is likely to continue till 2022 before it eases gradually.

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

India's Top 5 Monopoly Stocks to Watch Out for (Views On News)

Nov 30, 2021

These 5 companies dominate their sectors with a huge piece of the pie.

5 Indian Companies Embracing Blockchain Technology (Views On News)

Nov 23, 2021

Blockchain adoption in India was slow in the past. Now, the technology is being well received.


Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


Dec 3, 2021 (Close)