Shares of auto companies rose 0.13% to 2.23% after automobile dealers' body FADA on Wednesday said retail sales of passenger vehicles in November increased, driven by festive demand during the month.
Meanwhile, the BSE S&P Sensex was up 139.87 points or 0.35% to 40,552.44. The S&P BSE Auto index advanced 0.70% to 17,689.94, outperforming the benchmark Sensex.
Tata Motors (up 2.23%), Hero MotoCorp (up 1.3%), Eicher Motors (up 1.28%), Force Motors (up 0.84%), Mahindra & Mahindra (up 0.78%), TVS Motor Company (up 0.77%), Escorts (up 0.74%), Ashok Leyland (up 0.59%), Maruti Suzuki India (up 0.41%), Bajaj Auto (up 0.21%) and SML Isuzu (up 0.13%) advanced.
Vehicle registrations across the country increased by 2% in November year-on-year due to the festive season, the Federation of Automobile Dealers Associations (FADA) said on Wednesday.
Two-wheeler registrations totalled 17.05 lakh last month compared to 16.6 lakh in November last year, marking an increase of 3%.
Three-wheeler registrations showed a dramatic jump of 20% with 65,348 registrations in November 2019 compared to 54,639 in the year-ago period.
However, passenger vehicle registrations rose by only 1% to 2.57 lakh from 2.55 lakh in the year-ago period. But commercial vehicles dropped by 8% to 77,394 registrations versus 84,040 in November last year, data released by FADA showed.
That took overall vehicle registrations to 21.05 lakh, up 2% from 20.54 lakh in November 2018.
FADA president Ashish Harsharaj Kale stated that with strong spill over demand post the festive season, the month of November gave extended cheer to the dealer community with retails registering a slight growth YoY in all segments except CV's, where demand still continues to be quite weak. Agriculture produce is now trickling into the markets after the extended monsoon which delayed the crop also contributed to the uptick in the semi urban and rural markets.
Along with this, effects of the positive measures taken by the government are also playing its part. With slight positivity in November, dealers inventory remained more or less at the same levels in both 2W and PV categories. Dealers though got an opportunity to further reduce their inventory in CV category by around 5 days, he added.
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