Automobile stocks ride high amid growth in February retail sales
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Automobile stocks were trading higher on the BSE, as the Federation of Automobile Dealers Associations (FADA) in its latest data has showed that automobile retail sales in India rose 13 per cent year on year in February 2024 with all the segments, including passenger vehicles and two-wheelers, witnessing robust offtake. Overall retail sales stood at 20,29,541 units in February 2024 as compared to 17,94,866 units in the year-ago period.
Force Motors is currently trading at Rs. 6398.95, up by 503.70 points or 8.54% from its previous closing of Rs. 5895.25 on the BSE.
Tata Motors is currently trading at Rs. 1038.45, up by 20.85 points or 2.05% from its previous closing of Rs. 1017.60 on the BSE.
Ashok Leyland is currently trading at Rs. 172.00, up by 1.35 points or 0.79% from its previous closing of Rs. 170.65 on the BSE.
TVS Motor Company is currently trading at Rs. 2294.35, up by 14.85 points or 0.65% from its previous closing of Rs. 2279.50 on the BSE.
FADA said passenger vehicle sales grew 12 per cent to 3,30,107 units in February 2024 as against 2,93,803 units in February 2023. Two-wheeler sales stood at 14,39,523 units, up 13 per cent, as compared to 12,71,073 units in the same period last year. Commercial vehicle retail sales rose to 88,367 units in February 2024, registering a growth of 5 per cent as against the same month last year. Three-wheeler retail sales saw a growth of 24 per cent year on year to 94,918 units in February 2024. Similarly, tractor sales grew 11 per cent to 76,626 units in February 2024 from 69,034 units in February last year.
FADA President Manish Raj Singhania has said that passenger vehicles saw the highest sales figures ever recorded for the month of February. This upward trajectory was propelled by the strategic introduction of new products and enhanced vehicle availability. The growth in the segment was driven by the rural sector, premium model demand, and strong entry-level segment performance, with broader product availability and compelling offers enhancing product acceptance. Factors like favourable marriage dates and improved economic conditions also contributed to this positive growth.
