Auto shares dip post October sales

Shares of most of the frontline automobiles companies are trading lower after reporting drop in vehicle sales during the month of October despite of the festive season.

Tata Motors, Mahindra and Mahindra (M&M), Hero MotoCorp, Eicher Motors and Maruti Suzuki India are down 1-2% on the Bombay Stock Exchange (BSE).

At 0947 hours, S&P BSE Auto index, the largest loser among the sectoral indices, was down nearly 1% or 195 points at 18,384 compared to a marginal 0.13% or 37 points decline in S&P BSE Sensex.

Nine of the country's leading automobile manufacturers on Saturday reported a combined drop of 4% in volumes to 206,574 units last month on an annual basis.

This was the first sales decline after April this year. According to data available with the Society of Indian Automobile Manufacturers (SIAM), the industry body, sales had fallen 9.5% to 188,541 units in April, a Business Standard report suggests.

Tata Motors October sales decline 17% to 42,819 vehicles. Its passenger vehicle deliveries fall 19% to 11,511 units. M&M’s October total sales decline 15% to 42,776 units, while Maruti Suzuki India total sales drop 1.1% to 103,973 units.

"Owing to festivals and state elections during October, Maruti Suzuki had 19 working days. This limited the availability of vehicles during the month. In October 2013, Maruti Suzuki had 24 working days," the company said in a statement.

Meanwhile, TVS Motor Company has surged nearly 3% to Rs 267, also its record high on BSE, after posted a growth of 22% growth in sales of 241,044 units during October, 2014, as against the same month of previous year.

Bombay Stock Exchange - BSE

Tata Motors