TVS Motors, Hero MotoCorp, Tata Motors rise after FADA releases data on festive season
While TVS Motor Company shares hit a record high of Rs 1,850 apiece on BSE, Tata Motors and Hero MotoCorp clocked 52-week highs at Rs 702.9 apiece and Rs 3,741.1 apiece, respectively.
Auto stocks rose in the morning deals on Wednesday, November 29, a day after the industry body, the Federation of Automobile Dealers Associations of India (FADA), released data on festive season sales that began on the first day of Navratri and ended 15 days post-Dhanteras.
While TVS Motor Company shares hit a record high of Rs 1,850 apiece on BSE, Tata Motors and Hero MotoCorp clocked 52-week highs at Rs 702.9 apiece and Rs 3,741.1 apiece, respectively. The S&P BSE Auto index around 10:07 a.m. was up 0.88 per cent. Hero MotoCorp was the top gainer, rising over 3 per cent.
Meanwhile, the Nifty Auto index was also up 0.67 per cent at around the same time when all the automobile stocks except Ashok Leyland traded in the green. Samvardhana Motherson International was the top gainer on the index, rising nearly 3 per cent.
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Highlights of the FADA report:
The automobile sector logged 19 per cent retail sales volume growth during the 42-day festive period.
-A new milestone was reached with vehicle sales climbing to 37.93 lakh, a 19 per cent increase from last year's festive period of 31.95 lakh.
-Growth was observed in the two-wheelers by 21 per cent, three-wheelers by 41 per cent, commercial vehicles by 8 per cent, and passenger vehicles by 10 per cent.
-The tractor segment experienced a slight decline of 0.5 per cent.
-Record-breaking sales were reported in several categories, with rural areas particularly contributing to the surge in two-wheeler purchases.
-While sports utility vehicles (SUVs) were the most demanded vehicles, inventory levels for passenger vehicles remain a significant concern as vehicle makers continue to push further dispatch, thus keeping the inventory rate at near all-time high levels.
According to reports, Hero MotoCorp's sales grew in tier II/Tier III cities and rural areas was 26 per cent in the 42-day festival season.
10:59 AM IST