India auto shares rise after robust Feb sales post-demonetisation
The Indian auto industry registered a growth of 6.05% in April-January 2017 over the same period last year.business Updated: Mar 02, 2017 16:52 IST
Indian auto shares rose on robust February sales growth of some automakers, which are returning to normalcy from the red since Prime Minister Narendra Modi demonetised high currency notes on November 8.
Tata Motors was up 3.4% while Bajaj Auto gained 2%, Hero MotoCorp 1.8% and Eicher Motors 0.4% in the Mumbai market whose benchmark Sensex rose as much as 0.55% to 29,145.62 in intra-day trade.
Tata Motors sales grew 2% with passenger vehicle rising 12% on overwhelming response to its new crossover Hexa as well as the sustained demand for the Tiago.
Bajaj Auto sales were up marginally on tepid domestic demand but exports were up 15.6%.
Hero MotoCorp sales were down 4.8% but it is picking up as remonetisation gains momentum and consumers recover from the cash crunch.
In January, Indian automobile sales were down 4.7% even though passenger vehicles were up 14.4%, according to data released by Society of Indian Automobile Manufacturers (SIAM).
The demonetisation drive has dented consumer demand as Indians faced problems in withdrawing new currency notes from banks and ATMs.
The industry produced a total 21,086,185 vehicles including passenger vehicles, commercial vehicles, three wheelers, two wheelers and quadricycles in April-January 2017 as against 19,882,485 in April-January 2016, registering a growth of 6.05% over the same period last year.
During April-January, sales of passenger vehicles grew by 9.2% while commercial vehicles were up 3.03% and 2-wheelers 8.3%. But three-wheeler sales dipped 1.1%.