Auto stocks rally as domestic car sales pick up

Domestic car sales grew by 22% in the month of October

Shares of auto companies are trading firm in an otherwise weak market as the sales of the auto companies in the domestic market increased in the month of October amid the ongoing festive season.

In the 4-wheeler segment, Tata Motors, Maruti Suzuki and M&M have gained between 0.2-2%. Tata Motors has extended its gains back of a new proposed cost cutting plan of JLR. Meanwhile, in the 2-wheeler space, Bajaj Auto and Hero Motocorp rose between 1-2%.

Domestic passenger car sales increased 21.80% to 1,94,158 units in October from 1,59,408 units in the corresponding period last year.

Further, the sale of motorcycle rose 5.66% to 10,65,856 units in October as against 10,08,761 units sold during the same month last year, according to the data released by the Society of Indian Automobile Manufacturers (SIAM).

The total sales of two-wheelers jumped 13.31% last month to 16,56,235 units as against 14,61,712 units in October, 2014.