Two wheeler giants Bajaj Auto Limited and Hero Honda struggle to keep the momentum going on 2nd January 2012 as they put up a poor performance on the Bombay Stock Exchange due to falling sales.
However, Tata Motors and Mahindra & Mahindra (M&M), which were expected to grow noticeably during the month of December, witnessed a 'no-profit no-loss' result. Auto part suppliers too faced the heat as reduced auto sales directly affected their profit margins. The likes of Apollo Tyres, Bharat Forge and Cummins India, also lost share value, though their recovery will not require much effort.
On the basis of percentage, Bajaj Auto emerged as the worst hit company, with its stocks dipping by Rs. 135.80 or 8.53 per cent to reach Rs. 1,457. Hero MotoCorp also witnessed a shed of Rs. 85.85 or 4.51 per cent to trade at Rs. 1,819. The value of shares of Tata Motors, which had expected a 22 per cent year-on-year growth in sales during December, increased by Rs. 1.35 to trade at Rs. 179.75.
Maruti Suzuki also joined the league of gainers with an increase of Rs. 8.45 in its shares to reach at Rs. 928.50. On one hand, the company's sales in the domestic market went down by about 13 per cent due to weak customer sentiments, while its exports witnessed a 50 per cent growth on the other.
Auto companies continue to struggle against the high interest rates and slowdown in the economy. However, these makers are hoping to improve in the coming time as interest rates are expected to come down in the near future.
