India’s auto sector slumped for the second straight day as strong December sales boosted investor sentiment. Major players like Eicher Motors, Maruti Suzuki, Ashok Leyland, and Mahindra & Mahindra (M&M) rose up to 5 percent in intraday trade on Thursday.
Sector indicators work very well
At 10:44 AM, the Nifty Auto index rose 2 percent, outpacing the 0.9 percent gains in the Nifty 50. In two days, the auto index rallied 3 percent, recovering from its two- and three-point decline. in December 2024.
Eicher Motors sets new record
Eicher Motors, parent of Royal Enfield, hit an all-time high of Rs 5,227 on the BSE after reporting a 25 percent YoY jump in motorcycle sales at 79,466 units. International sales saw an impressive 90 percent increase, reflecting strong global demand.
A solid performance from all players
- Maruti Suzuki: Up nearly 4 percent as sales rose 29.6 percent YoY to 178,248 units. Exports jumped 39 percent to a record 37,419 units.
- Ashok Leyland: Gained four percent, bolstered by a five percent increase in total sales, led by strong growth in the medium and heavy-duty commercial vehicle segment.
- Mahindra & Mahindra: Rose of three percent with a 19.9 percent jump in tractor sales, driven by strong Kharif cash flow and strong Rabi sowing sentiment.
Analysts remain optimistic about the sector’s performance, citing strong demand, growing exports, and positive views from farmers.
