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Force Motors' total sales were up over 50% from last year in September. This was the second month in a row that sales have grown by 50%, while Bajaj Auto's exports fell below the mark of 2.5 lakh units for the first time in four months.
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Auto stocks that came out with their September sales figures on Thursday, October 1, are all trading with losses of up to 7.5%. Bajaj Auto is leading the losses, followed by declines seen in shares of Mahindra & Mahindra, Escorts Kubota, and SML Mahindra.
Why Bajaj Auto Shares Fell 6% on Thursday?
Shares of Bajaj Auto fell nearly 7.5% on Thursday after reporting weak sales figures for October.
Domestic sales declined 9% on a year-on-year basis, while exports were lower than expectations, despite a 32% jump from last year. In fact, Bajaj Auto's exports fell below the 2.5 lakh units mark for the first time in four months.
Total two-wheeler sales were up 5% led by exports, while domestic two-wheeler sales were down 12%. Three-wheeler sales were down 9% year-on-year.
Why Mahindra & Mahindra Shares declined on Thursday?
M&M's auto sales in September sales were largely in-line with expectations, while tractor sales were lower, on expected lines.
M&M's overall sales were up 15% from last year, compared to the CNBC-TV18 poll of 16%. SUV sales growth stood at 14%, while LCV sales for the 2-3.5 tonne category rose 13% year-on-year.
Tractor sales for M&M fell 21%, much higher than the 11% estimate. Tractor sales fell to 52,100 unit, compared to 66,111 units last year.
Shares of Mahindra & Mahindra are down 2.2% at 2,885.
Strong Sales From Force Motors
Force Motors' total sales were up over 50% from last year in September. This was the second month in a row that sales have grown by 50%.
The overall September sales figure of 4,101 units was the highest in a month for the company since March. Domestic sales were up 62% from last year at 4,027 units.
Shares of Force Motors opened higher but are now trading with losses of 0.8% at ₹16,910. The stock is down 19% so far this year.
Escorts Kubota
The tractor manufacturer reported a 16.7% drop in its overall sales in September to 15,214 units, while exports were down 35% from last year to 303 units.
Domestic tractor sales at 14,911 units were down 16% from last year.
Shares of Escorts Kubota are down 3% on Thursday at ₹2,634.2. The stock is down 31% so far this year.
HomeMarket NewsExplained - Why Auto stocks, led by Bajaj fell up to 7% after their September sales numbers
