The shares of automobile companies were up today on fresh buying following improved sales across the sector. Multi-utility and tractor major Mahindra & Mahindra (M&M) gained almost 10 per cent to Rs 103.80. Other prominent gainers were two-wheeler maker TVS Suzuki, which was up 5.53 per cent to Rs 163.20, Swaraj Mazda was up 5.06 per cent at Rs 38.40, truck and bus-maker Ashok Leyland was up 3.78 per cent to Rs 83.70, Bajaj Auto was up 3.34 per cent to Rs 396.40 and Tata Engineering rose 1.65 per cent to Rs 104.55.
Analysts attribute the rally to improved sales across the sector in November and better September quarter results. Tata Engineering has jumped by 68 per cent in less than three months from a low of Rs 63.45 on 17 September 2001 to the current price, while M&M has gained 100 per cent in less than three months and Ashok Leyland has gained 64 per cent in two months.
While Tata Engineering is yet to report its November 2001 vehicle sales numbers, M&M, according to industry sources, has achieved a strong month-on-month rise in its multi-utility vehicle (MUV) sales for November 2001. M&M's MUV sales are said to have gone up 16 per cent to 5,225 in November 2001 from 4,500 in October 2001. But its tractor sales are believed to have declined by about 16 per cent to 6,335 month-on-month to in November 2001 because of the dumping of supplies by dealers in October 2001 due to the festive season. Analysts, however, expect tractor sales to pick up in the coming months.
Last week, two-wheeler major Hero Honda major raised its motorcycle sales figures for FY 2002 to 13 lakh from the earlier projection of 12.50 lakh due to strong sales till November 2001. Hero Honda's motorcycle sales went up 38 per cent in November 2001 compared to the corresponding period of the previous year.