Passenger car sales have appreciated by 47% (year on year) in September, while medium and heavy commercial vehicles (M/HCVs) posted 79.6% rise in sales. This was reported by a leading financial daily. A 47% rise in passenger car sales reflects sustained demand growth. Industry sources reveal that car sales are being made to individual buyers as opposed to corporate houses, which implies that retail buyers are flocking to the market. Another factor that may have stimulated demand for cars is the recent spate of launches in the car segment. With more launches planned in the mid-car segment, the demand is likely to be sustained at the current level.
While market shares of all companies in the small car segment were not available, Maruti's sales figures imply that it has surrendered market share in small cars to Hyundai (Santro), Daewoo (Matiz) and Tata (Indica). Consequently Maruti's share has fallen from 66.7% (in April-July 1999) to 68.7% (in April-September 1999).
A 79.6% (year on year) rise in M/HCV sales affirms that the country is very much on the path of economic recovery. Increase in freight rates (after the diesel hike) has not dampened demand as was feared earlier.
TATA MOTORS share price is trading up by 5% and its current market price is Rs 302. The BSE AUTO is up by 3.8%. The top gainers in the BSE AUTO Index are TATA MOTORS (up 5.2%) and M&M (up 6.8%).
TATA MOTORS DVR share price is trading up by 5% and its current market price is Rs 133. The BSE AUTO is up by 3.3%. The top gainers in the BSE AUTO Index are TATA MOTORS DVR (up 5.0%) and M&M (up 6.1%).
The BSE IT Index Down at 27,510 (down 3.6%). Among the top losers in the BSE IT Index today are COFORGE, AURIONPRO SOLN and ALLSEC TECHNOLOGIES. Meanwhile, the BSE Sensex has surged 0.3% to 48,315.
M&M share price is trading up by 5% and its current market price is Rs 790. The BSE AUTO is up by 1.7%. The top gainers in the BSE AUTO Index is M&M (up 5.1%). The top losers are TATA MOTORS and TVS MOTORS .
More Views on NewsA tiny chemical company, started in the Licence Raj era, is a great example of a new wealth creating opportunity.
In this video I'll show you exactly how I go about picking stocks for trading.
Rather than predicting the market, successful investing is more about preparing well and placing your bets accordingly.
What should you do if the market falls? In this video, I'll tell you what I will do.
Ajit Dayal on how India's vaccine strategy will impact the markets.
More
Equitymaster requests your view! Post a comment on "Car, M/HCV sales sustain growth". Click here!
Comments are moderated by Equitymaster, in accordance with the Terms of Use, and may not appear
on this article until they have been reviewed and deemed appropriate for posting.
In the meantime, you may want to share this article with your friends!