Maruti Suzuki, Tata Motors, Mahindra & Mahindra rise on robust sales in Q4 FY23

Shares of automobile manufacturers surged on Monday following sustained growth in sales in the January-March quarter of FY23. While share prices of leading automobile manufacturers such as Maruti Suzuki, Tata Motors and Mahindra and Mahindra surged as much as 3.5% on Monday, the Nifty Auto index surged 1.53% to 12,430.90.

On Monday, the share price of Maruti Suzuki, the country's largest automobile manufacturer, surged as much as 3.4% to hit an intra-day high of ₹8,575 apiece on the Bombay Stock Exchange (BSE). During the session, the market capitalisation of the automobile major stood at ₹2.57 lakh crore as 14,675 stocks changed hands at the BSE as against the two-week average of 7,694 shares. The company posted its highest-ever total sales of 1,966,64 units for FY23. Of this, the total sales include domestic sales of 16,44,876 units, with a growth of 20.5% over FY 2021-22, sales to other OEMs of 61,955 units and highest ever exports of 259,333 units. However, in March, the company’s domestic sales dipped 1.4% to 170,071 units in March as against 1,72,535 units in February 2023 owing to a shortage of electronic components. Of this, the domestic sales stood at 1,36,787 units, sales to original equipment manufacturers (OEMs) stood at 3,165 units and its highest-ever monthly exports stood at 30,119 units. The shortage of electronic components also dampened the company’s production to 1,54,148 units in March 2023 as against 1,63,392 units in the same period last year. The company has also hiked the price across models by 0.8% with effect from April 1.

Meanwhile, the share price of Tata Motors surged as much as 1.02% to hit an intraday high of ₹424.90 apiece on the BSE. During the session, the auto major’s market capitalisation stood at ₹1.4 lakh crore as 2,65,174 shares changed hands on the BSE as against the two-week average of 2.83 lakh shares. In Q4 of FY23, the company’s cumulative sales in the domestic and international market surged by 3.4% to 2,51,822 units as against 2,43,459 units in the same period last year. Of this, the domestic sale of MH & ICV including buses and trucks stood at 54,435 units.

Shares of Mahindra & Mahindra surged 1.83% to hit an intraday high of ₹1,179.85 apiece on the BSE. During the session, the company’s market capitalisation stood at ₹1,45 lakh crore. Around 47,886 shares exchanged hands on the BSE against the two-week average of 0.44 lakh shares. Its auto sales for March stood at 35,976 vehicles, its highest ever, with a growth of 31%. The company also clocked the highest ever annual sales of its SUVs at 356,961 units, with a growth of 60%.

Shares of two-wheeler vehicle manufacturers also surged amidst the robust sales in Q4. Hero Motocorp's share price surged 3.83% to hit an intraday high of ₹2,437 apiece on the BSE. In March, Hero Motocorp registered a double-digit growth in sales by 15% to 5,13,942 units as against 4,50,154 units in the same period last year. The company sold 53,28,546 units in FY23, registering a healthy growth of 8% over the corresponding period of the previous fiscal (FY22), when the Company had sold 49,44,150 units.

Meanwhile, the TVS Motors stock surged 1.9% to hit an intraday high of ₹1,097.90 apiece on the BSE. During the fourth quarter of the financial year 2022-23, the two-wheeler company registered sales of 8.40 Lakh units as against 8.15 lakh units registered in the fourth quarter of financial year 2021-22.