Maruti, M&M, Ashok Leyland shares surge on robust Jan sales; Tata Motors skids

Baring Tata Motors, shares of Maruti Suzuki India, Ashok Leyland, and Mahindra & Mahindra were trading higher on Thursday, a day after the automobile companies posted their sales for January. The auto stocks also reacted to the sops announced for the auto industry in the Budget session. On Wednesday, Finance Minister Nirmala Sitharaman in her budget announcements for the year FY23-24 exempted the customs duty on the imports of lithium-ion cells which are used in electric vehicles. 

The share price of Maruti Suzuki surged as much as 1.9% to hit an intra-day high of ₹8,936 apiece on the Bombay Stock Exchange. At 12:07 pm, the stock of the country's largest automobile manufacturer was trading at 0.90% at ₹8,840. Maruti Suzuki’s stocks opened a tad higher at ₹8,765 against the previous closing price of ₹8,761. The company’s market capitalisation stood at ₹2,68,443 crore, with as many as 4,179 shares changing hands as against the two-week average of 0.19 lakh shares. The company’s passenger vehicle sales witnessed a surge of 13.1% at 1,78,429 units in January this year, as against the 1,57,668 units last year. Of this, the company sold 3,775 units to other equipment manufacturers and exported 17,393 units. 

Tata Motors, however, was trading lower by 0.48% at ₹444, despite posting an increase in domestic sales by 10% YoY at 79,681 units in January this year, as against 72,485 units in the same period last year. During the session, the company’s market capitalisation stood at ₹1,47,533 crore with as many as 2,89,136 shares exchanging hands in the BSE as against the two-week average of 12.39 lakh shares. In the commercial vehicle segment, the domestic sales of M&HCV vehicles witnessed a growth of 24% at 10,736 units in the month under review as against 8,660 units in January last year. The sales of commercial vehicles both in the domestic and international market, witnessed a decline of 7% YoY at 32,780 units as against 35,268 units in January last year. The sales of total passenger vehicles witnessed a growth of 18% YoY to 47,987 units as against 40,777 units in the same period last year. The exports of the company’s passenger vehicles was up 83% YoY to 302 units in January this year.  

Meanwhile, other automobile manufacturers such as Mahindra & Mahindra, and Ashok Leyland also witnessed a surge in the vehicle sales by 37% and 23%. The share price of Mahindra & Mahindra was trading 0.87% higher at ₹1,364. During the session, the company’s market capitalisation stood at ₹1,69,571 crore with 31,550 shares exchanging hands at the BSE as against the two week average of 0.52 lakh shares. In the month under review, the company sold 64,335 vehicle units, of which its SUV unit sales witnessed a surge of 66% at 32,915 units. The company's passenger vehicle segment sold 33,040 vehicle units in January, and the company’s exports stood at 3,009 vehicle units. 

The share price of Ashok Leyland was trading 3.49% higher at ₹152.85. The commercial vehicle manufacturer registered a growth of 23% in its January sales at 17,200 units as against 13,939 units in the same period last year.