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Shares of Indian auto companies rose on strong April sales. Tata Motors Ltd jumped as much as 3.3 per cent, and Maruti Suzuki India gained as much as 2.1 per cent. TVS Motor Co, Mahindra and Mahindra Ltd and Bajaj Auto rose between 0.7 per cent and 1.2 per cent.
Tata Motors' April domestic sales of commercial and passenger vehicles surged 86 per cent, with medium and heavy commercial truck segment jumping 317 per cent, helped by government’s focus on infrastructure development and road construction.
Maruti Suzuki India's April sales jumped 14.4 per cent. Sales of TVS Motor, Mahindra and Mahindra, and Bajaj Auto rose 22-26 per cent. Eicher Motors' April motorcycles sales rose 27 per cent, while trucks and buses sales climb 28 per cent.
JP Morgan analysts say 6-10 per cent growth “across segments is achievable” going into FY19. Macquarie analysts are optimistic on the auto industry to sustain healthy growth in 2018, “led by higher income growth, rural demand revival and rise in infrastructure spend”.
Maruti has remained as the top pick for at least two brokerages, Nomura and Macquarie, given its high volume visibility and market leading growth.
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