Hero MotoCorp, Tata Motors fall up to 3% post April sales; Maruti, Bajaj, TVS rise

Auto stocks were in focus on Tuesday as most of the companies released their monthly sales figures for April 2023 on Monday. While Hero MotoCorp and Tata Motors were under selling stress, Bajaj Auto, Maruti Suzuki, and Mahindra and Mahindra were among the notable gainers on the bourses. The auto counters from broader markets like Ashok Leyland, Eicher Motors, Samvardhana Motherson International witnessed mixed trading. In comparison, the BSE Auto index was up marginally by 0.2%, while the BSE Sensex rose nearly 0.5% in the first two hours of trade so far.

Hero MotoCorp was the top laggard on the BSE auto index, falling as much as 3.3% to hit an intraday low of ₹2,470.60 on the BSE after reporting weak monthly sales in April. The country’s largest two-wheeler manufacturer has reported a 3% drop in domestic sales at 386,184 units last month as compared to 398,490 units in the same period a year ago. Its exports plunged to 9,923 units in April against 20,132 units in the corresponding period last year, impacted by the devaluation of currencies especially in Africa and other developing countries. Segment-wise, motorcycle sales slipped to 368,830 units last month, while scooter sales jumped to 27,277 units in April 2023.

Tata Motors shares also dropped 2.2% to ₹474.60 on the BSE as investors weighed disappointing monthly sales figures for April. Its total wholesales declined 4% to 69,599 units last month as compared to 72,468 units in April 2022. In the domestic commercial vehicle category, it recorded 28% de-growth at 21,507, down from 29,880 units sold in the year-ago period. The total commercial vehicle sales dipped 27% to 22,492 as compared to 30,838 in the same period last year. 

Similarly, Ashok Leyland shares fell 1.6% to ₹143.60 on the BSE despite reporting a 10% growth in monthly sales in April. The company sold 12,366 units last month compared with 11,197 units in the same period last year.

On the flip side, Maruti Suzuki India shares climbed 1.4% to ₹8,709.50, while the market capitalisation rose to ₹2.63 lakh crore. Maruti, the country’s largest automaker in terms of m-cap, sold a total of 1,60,529 units in April 2023, including domestic sales of 1,39,519 units, sales to other OEMs of 4,039 units, and exports of 16,971 units. The overall sales surged 6.5% from 1,50,661 in the corresponding period last year. The company says the shortage of electronic components had some impact on the production of vehicles. 

Among others, Eicher Motors, Samvardhana Motherson International, Force Motors, and TVS Motors gained between 1-2%.

Meanwhile, Hyundai Motor India (HMIL), a non-listed entity, registered domestic sales of 49,701 units and export sales of 8,500 units, with cumulative sales of 58,201 units for April 2023. The domestic sales rose 12.9% to 49,701 as compared to 44,001, while the exports plunged 30.3% to 8,500 as compared to 12,200 in the year-ago period. Overall, Hyundai India recorded a 3.5% growth in monthly sales.

Kia India reported strong growth of 24% for the period of Jan-April 2023 over the corresponding period last year, and a 22% YoY growth with 23,216 units in April 2023. While Kia Sonet emerged as the top contributor to overall sales with 9,744 units, the Seltos and the Carens also performed well with 7,213 units and 6,107 units sold domestically, respectively. Kia’s flagship SUVs -- the Seltos and the Sonet continue to report strong growth with 32,249 units and 37,518 from Jan-April 2023, contributing roughly 33% and 38% respectively to Kia’s domestic sales.

MG Motor India, which recently launched the ultra-compact Comet EV, announced retail sales of 4,551 units in April 2023, a 126% year-on-year growth over the same month last year. The company said the supply chain constraints remain in a few models, though it's working towards meeting customer demand.