Tata Motors, TVS, Maruti Suzuki Sales Rise Impact on Share Prices

Improved customer sentiment, economic revival, surging stock market and the pushed sales of auto segment, has given us a reason to believe that best is yet to come. Recently, Tata Motors, TVS and Maruti Suzuki registered handsome growth in the December sales figures which signals strong 2018 for this sector and its investors. 

Tata Motors

After facing a lot of hurdles in form of demonetization and transition to the indirect tax regime, Tata Motors stood firmly. Its domestic sales jumped by 52 percent in December 2017 as compared to the last year. Call it as its attempt to remain in sync with the modern day e-vehicles demand or steady ramp up in the manufacturing of Bharat Stage-IV vehicles; the company has sold 54,627 vehicles in total. The domestic passenger vehicles sales surged by 31 percent and commercial vehicle by 62%, intermediate and light commercial vehicles sales increased by 78 percent and pick up segment sales increased by 43 percent, utility vehicles sales surged by 406 percent, thus giving us a belief that Tata Motors is in the fast lane.

Impact on Tata Motors Share Price

Owing to the increase in the revenue and steady registered growth Tata Motors,  share price jumped by 4.4% to Rs 253. The other reasons cited for the increase in its share price is- improved sales overseas, strong demand outlook and decline in outstanding debt.

TVS Motors

Two wheeler maker TVS Motors has fared well. The company reported nearly 38% increase in its sales at 247,630 units in the earlier month.  Scooter sales registered a growth of 50.5% increased to 83,640 units, two wheeler exports climbed up by 52.7 percent and three wheeler sales registered the growth by 72.1 percent.

Impact on TVS Motor Share Price

After the announcement of its increased revenue, the scrip jumped up high. On the BSE the share hits a record high of Rs 790 and a low of Rs 778.55. The stock outperformed the market in the last month till 1 January 2018, rising up by 5.78% as compared to 2.98% gains in the Sensex.

Maruti Suzuki

The country’s largest car maker, Maruti reported an increase of 11.4% in sales at 118,560 units in the last month of 2017 and demand continues to grow in the compact and utility car segment. The sales of mini cars like Alto and Wagon R has grown by 2% in the last month while the compact car segment like Swift, Celerio, Ignis, Dzire has grown by 26%. Unfortunately, the demand for midsize Sedan lowered down by 36%, even the utility car segment posted the record growth of 20%. The sales for 2017 have expanded to almost 15%.

Impact on Maruti Suzuki Share Price

The Shares of Maruti Suzuki is known to be the most active stock in terms of value. On Tuesday, it was trading at Rs 89.82 crore. After the announcement of its rise in sales the share price rose high but now it is trading at Rs 9562.

Conclusion

The rise in automobile sales and increased revenue has given is the expectation that the momentum in the market will continue to rise in this fiscal year too.