Auto stocks rallied in the early trade of Tuesday, October 10, after the Federation of Automobile Dealers Associations (FADA), the apex national body of the automotive retail industry in India, said that automobile retail sales surged over 20 per cent in September.

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The Nifty Auto, which comprises stocks of companies that operate in the automotive sector, was up 1.23 per cent at around 10:02 a.m. Stocks in the index rose between 0.41 per cent and 2.54 per cent.

Last seen, Samvardhana Motherson International was up 2.54 per cent.

Meanwhile, TVS Motor, Tata Motors, Bharat Forge, M&M, Bal Krishna Industries, Maruti Suzuki, Ashok Leyland, and Bajaj Auto traded between 1.05 and 1.91 per cent. 

Likewise, Sona BLW Precisions Forgings Ltd., MRF, Bosch, Hero MotoCorp, Tube Investments of India, and Eicher Motors traded between 0.41 per cent to 0.94 per cent. 

Individually, TVS Motor hit a record high at Rs 1,552 apiece on BSE.

What did the FADA report say? 

According to FADA, automobile retail sales in India surged over 20 per cent in September as demand soared across vehicle segments with the onset of festival season.

Overall automobile registrations rose to 18,82,071 units last month from 15,63,735 units in September 2022, the Federation of Automobile Dealers Associations (FADA) said in a statement.

New product launches also led to improved offtake of vehicles last month, FADA President Manish Raj Singhania said.

The year-on-year (YoY) analysis revealed broad-based growth across segments as two-wheeler sales grew 22 per cent, three-wheeler retail sales soared 49 per cent, passenger vehicle sales grew 19 per cent, and commercial vehicles saw a sales growth of 5 per cent.

Tractor retail sales, however, declined 10 per cent last month, as compared to the same month last year. Passenger vehicle registrations rose 19 per cent YoY last month to 3,32,248 units, as compared to 2,79,137 units in September 2022, as vehicle availability improved.

Two-wheeler retail sales grew by 22 per cent to 13,12,101 units last month, up from 10,78,286 units in September 2022.

Auto sales outlook 

FADA has an optimistic stance on the auto retail sector, anticipating a thriving festive season.

"As as we move past the Shraadh period on October 14, the market is poised for the onset of Navratri, heralding a 42-day festive window. With these promising indicators, FADA adopts an optimistic stance, anticipating a thriving festive season for the auto retail sector." FADA said. 

(With agency inputs)